Australian dollar rises above $0.70 as US dollar weakens

The Australian dollar held above $0.70 at a seven-week high, helped by improving global risk appetite, broad US dollar weakness and firmer domestic data. Australia's private sector gained momentum in July, with the composite PMI revised up to 53.2, the highest since January, as services activity hit a six-month high and manufacturing returned to growth. Stronger-than-expected household spending also pointed to resilient local demand, even as markets have priced out almost any chance of a Reserve Bank of Australia rate hike at next week’s policy meeting. In broader markets, optimism that a deal to reopen the Strait of Hormuz is nearing completion eased fears of major supply disruption and lifted Australian equities to a record high. The dollar was also pressured after coordinated support for the Japanese yen by US and Japanese authorities spilled over into other Asian currencies.