AUD/USD bounces off monthly low, holds firm above 0.6400 after mixed US PMI prints

• AUD/USD recovers from a one-month low near 0.6372 as mixed US PMI data cools safe-haven flows into the Greenback.
• S&P Global US Composite PMI slips slightly; manufacturing holds steady, while services softens but beats expectations.
• AUD/USD rebounds from key support near 0.6400; daily close above 0.6450 may open path toward 0.6500-0.6550.

The Australian Dollar (AUD) reverses earlier losses and edges higher against the US Dollar (USD) on Monday, as traders reassess safe-haven flows after the United States (US) launched attacks on Israel over the weekend. The initial rush into the Greenback pushed the Aussie to a one-month low before a mixed batch of US Purchasing Managers Index (PMI) data helped temper US Dollar demand.

AUD/USD is currently trading around 0.6452 at the time of writing, during the American session, having erased most of its intraday losses and now down approximately 0.38% on the day. The pair rebounded strongly from a session low of 0.6372, finding a tailwind as the latest US PMIs failed to deliver a decisive boost to the US Dollar.

US data painted a slightly softer tone, the S&P Global Composite x PMI slipped to 52.8 in June from 53 in May, hinting at a mild loss of momentum while still marking over two years of expansion. The Manufacturing PMI held steady at 52, in line with May's 15-month high and beating forecasts, while the Services PMI dipped to 53.1 from 53.7 but remained above market expectations. Overall, the mixed readings cooled fresh buying interest in the US Dollar, giving AUD/USD room to bounce.

Meanwhile, earlier in the day, S&P Global figures showed Australia's private sector growing at its second-fastest pace in ten months, with services activity hitting a three-month high and manufacturing holding steady. The encouraging PMI print offered a measure of relief for the Aussie, providing some reassurance after recent soft economic releases had revived talk of possible rate cuts.

Technically, the pair's strong recovery from the lower edge of its tight range suggests buyers are defending key support near 0.6400, reinforced by the 100-day Moving Average around 0.6362. The RSI has turned higher toward the midline, and the MACD shows early signs of stabilization. A daily close above 0.6450 could open the door for a push back toward the 0.6500-0.6550 area, keeping the range-trading strategies alive. A failure to hold above 0.6400, however, would re-expose the downside toward 0.6300.