AUD/USD juggles around 0.6400 ahead of US/Aussie PMI

• AUD/USD struggles to find a decisive move ahead of the preliminary US/Australia PMI for August.
• Investors anticipate less-hawkish interest rate guidance from Fed chair Jerome Powell at Jackson Hole Symposium.
• The Australian Dollar fails to deliver a decisive move despite the PBoC lowering its one-year PLR to 3.45%.

The AUD/USD pair trades back and forth in a narrow range around 0.6400 as investors prepare for the Jackson Hole Economic Symposium, which will start on Thursday. The Aussie asset struggles to find a decisive move ahead of the preliminary United States/Australia PMI for August, which will be released this week.

S&P500 is expected to open on a bullish note, following positive cues from overnight futures. US equities are broadly expected to rebound after a healthy corrective move as investors hope that the Federal Reserve (Fed) will not raise interest rates further. Market participants anticipate that inflation is easing as expected in spite of tight labor market conditions.

The US Dollar Index (DXY) continues to trade sideways marginally below 103.50 ahead of Jackson Hole. Investors anticipate less-hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell as United States inflation continues to ease despite tight labor market conditions. Meanwhile, 10-year US Treasury Yields jump near 4.32% as the ‘last mile’ of US inflation will continue to discomfort Fed policymakers.

Before Jackson Hole Symposium, investors will focus on the preliminary S&P Global PMI, which will be released on Wednesday at 13:45 GMT.

The Australian Dollar fails to deliver a decisive move despite the People’s Bank of China (PBoC) lowering its one-year Prime Lending Rate (PLR) by 10 basis points (bps) to 3.45% while investors anticipated a rate cut by 15 bps. The Australian Dollar, being a proxy for China’s economic prospects, is facing the wrath of weak demand in China due to a higher jobless rate and significant deflation risks.

On Wednesday, investors will focus on the preliminary S&P PMI data for August. Manufacturing and Services PMI are seen steady at 49.6 and 47.9 respectively.