US FX WRAP: Dollar trims ISM Manufacturing strength seen on Monday; AUD outperforms after hawkish RBA hike

The US dollar's recent pullback indicates that the ISM Manufacturing data, which initially suggested strength, may not have firmly altered the outlook for USD.

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US FX WRAP: Dollar trims ISM Manufacturing strength seen on Monday; AUD outperforms after hawkish RBA hike

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Meanwhile, the Australian dollar's outperformance following a hawkish RBA hike signals a shift in market sentiment that favors higher yields, potentially impacting the broader FX landscape as traders reassess rate trajectories across regions.

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