AUD/USD Supported as China PMI Beats at 50.3 on AI Export Strength

AUD/USD is finding modest support following China's June manufacturing PMI printing at 50.3, beating market expectations and remaining in expansionary territory above the 50 threshold. All three PMI readings — manufacturing, non-manufacturing, and composite — surprised to the upside, providing a lift to China-exposed currencies including the Australian dollar and New Zealand dollar. However, the underlying composition tempers broader optimism, as the expansion was primarily driven by AI-linked and technology exports rather than broad-based domestic demand. This distinction limits the positive read-through for commodity-linked currencies that rely more heavily on Chinese consumption of raw materials. The data offers incremental support for risk sentiment toward China-sensitive assets, though traders should note the narrow breadth of the recovery. Near-term, AUD/USD may find resistance at recent highs while support holds around current levels. For commodity currencies, the key question remains whether China's tech-driven export strength can spill over into wider economic activity. Traders should monitor upcoming Chinese trade balance and retail sales data for confirmation of demand trends.