AUD/USD inter-markets: poor US ISM PMI to fuel further upside?

The AUD/USD pair extends its upward trajectory for the fifth straight session this Tuesday, having clocked fresh one-week highs just ahead of 0.7650 levels post-European open.

The latest leg higher in the Aussie was triggered by the RBA’s unchanged cash rate announcement, although the main catalyst behind the persistent strength seen in the AUD so far this session is the ongoing rally in metals’ prices. Copper futures on COMEX jumps +0.67% to fresh ten-day highs, gold climbs +0.71%, while silver prices rocket +1.40%.

Meanwhile, more or less stable Fed fund rates futures and Volatility index fail to provide any impetus to the upmove in the Aussie. Focus now shifts towards the US ISM non-manufacturing PMI report due later in the NA session.

The ISM services PMI is expected to disappoint in the reported month and hence, could benefit the AUD at the expense of the greenback. While the main risk event for the Aussie remains the Australian GDP figures due for release on Wednesday, which is expected to provide next direction on the major.