The Australian dollar fell after global stocks declined and the report showed that China’s manufacturing slowed, causing concerns that demand for country’s exports would wane. The currency suffered from the resulting risk aversion, but there was some good news that may support the Aussie.
China’s Flash Manufacturing PMI fell from 49.3 in July to 47.8 in August, the lowest level 9 months, according to the HSBS/Markit report. The Standard & Poorâs 500 Index of shares declined 0.8 percent and the Stoxx Europe 600 Index fell 0.6 percent yesterday. The MSCI Asia Pacific Index dropped 0.8 percent.
As for the good news, Reserve Bank of Australia Governor Glenn Stevens claimed that the nationâs mining boom has another year or two before it peaks. US jobless claims unexpectedly rose, adding an incentive for the US Federal Reserve to embark on the next round of quantitative easing.
AUD/USD was at 1.0438 as of 1:49 GMT today, following yesterday’s drop from 1.0507 to 1.0439. EUR/AUD advanced from 1.1919 to 1.2030 on the previous trading session and remained near that level today. AUD/JPY declined from 82.53 to 81.97 yesterday and stayed at that rate on today’s session.
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