AUD/USD remains subdued near 0.6450 following China’s RatingDog PMI data

• AUD/USD faces challenges following mixed Australia Purchasing Managers' Index data.
• China's RatingDog Services PMI declined to 52.6 in October from 52.9 in September.
• US deadlock has entered its sixth week, on track to become the longest federal funding lapse in the nation’s history.

AUD/USD continues its losing streak for the sixth consecutive session, trading around 0.6470 during the Asian hours on Wednesday. The pair remains subdued following the release of China's RatingDog Services Purchasing Managers' Index (PMI), which fell to 52.6 in October from 52.9 in September. The data matched the market forecast of 52.6 in the reported period.

The Australian Dollar (AUD) faced challenges following the release of the S&P Global Australia Services PMI, which climbed to 52.5 in October from 52.4 in September, signaling continued growth in services activity and extending the expansion streak to 21 months. Meanwhile, Composite PMI came in at 52.1, down from 52.4 prior.

However, the downside of the AUD/USD pair could be restrained as the Aussie Dollar could receive support from the positive developments surrounding the US-China trade talks, as China is a major trading partner for Australia. US President Donald Trump announced a cut to fentanyl-related tariffs on imports from China, lowering the rate from 20% to 10%, and the continued freeze of some of his reciprocal levies on Chinese goods. The moves will go into effect on November 10, per Bloomberg.

The US Dollar (USD) struggles due to the ongoing US government shutdown. The deadlock has now entered its sixth week and is poised to become the longest federal funding lapse in US history after the Senate once again failed to pass a short-term funding bill. The most recent attempt to resolve the standoff, Republican-backed temporary legislation, was rejected by the Senate for the 14th time on Tuesday.