AUD/USD picks up from two-month lows at 0.6415 ahead of US data  

• The Aussie Dollar attempts to bounce up from two-month lows with US PMI, Jobless Claims on focus.
• A moderate improvement in Australia's business activity has provided some support to the AUD.
• Investors remain wary of betting against the US Dollar ahead of Fed Powell's speech on Friday.

The Aussie Dollar is attempting to regain lost ground against its US counterpart on Thursday, following a 1.75% sell-off in the last five trading days. A significant improvement in Australian business activity has provided some support to the Aussie ahead of the release of US PMI and weekly Jobless claims figures.

Manufacturing activity accelerated to a 59.2 pace in August in Australia, according to preliminary S&P Global Purchasing PMI figures released late Wednesday, while the services sector's activity improved to 55.1 from 54.1 in the previous month.

Later today, the Preliminary US PMIs are expected to reveal a moderate slowdown in the services sector's activity to 54.2 from 55.7 in July, while manufacturing activity is seen contracting at a slower pace to 49.5, beyond the previous month's 49.8 reading.

Somewhat earlier, US Jobless Claims are expected to show an uptick to 225,000 from 224,000 in the previous week, adding to evidence of a softening labour market.

The US Dollar's reaction to these releases, however, is likely to remain limited as traders will be awaiting Fed Powell's speech on Friday to make investment decisions. With the market pricing an 80% chance of a rate cut in September, Powell's comments will be analysed for confirmation of those views.