Australian Dollar flatlines below 0.7200 as US-Iran talks continue, China PMI looms

The AUD/USD pair holds steady around 0.7185 during the early Asian trading hours on Monday. Traders continue to assess the developments surrounding the US-Iran peace negotiations. Also, China’s RatingDog Manufacturing Purchasing Managers Index (PMI) report for May will be released later on Monday. 

Iranian Foreign Minister Abbas Araghchi said on Sunday that talks and message exchanges with the US were ongoing, but highlighted that no assessment of negotiations could be made until a clear outcome was reached. “Talks and message exchanges are ongoing, and until a definite result is reached, it is not possible to judge,” said Araghchi. “Everything being said now is speculation and should not be given importance,” he added. 

Meanwhile, Iran's parliament speaker and top negotiator, Mohammad Bagher Ghalibaf, stated that Tehran will not accept any deal with Washington unless it ensures “the rights of the Iranian people are secured.” Any signs of rising tensions in the Middle East could boost a safe-haven currency such as the US Dollar (USD) and create a headwind for the pair in the near term. 

Data released by China’s National Bureau of Statistics (NBS) on Sunday showed that the official Manufacturing PMI declined to 50.0 in May from 50.3 in April. The reading came in line with the market expectations of 50.0. Additionally, the NBS Non-Manufacturing PMI rose to 50.1 in May, compared to 49.4 in April. 
The market forecast was for a 49.5 print.

Traders brace for China’s RatingDog Manufacturing PMI report for May, which is due on Monday. If the report shows a stronger-than-expected outcome, this could lift the Aussie against the Greenback.