The Australian dollar dropped today as the manufacturing data from China, Australia’s major trading partner, disappointed market participants, showing unexpected slowdown of sector’s growth.
The HSBC Flash China Manufacturing Purchasing Manager’s Index unexpectedly fell from 52.3 in January to 50.4 in February. Analysts have predicted it to stay little changed. Most traders thought that China’s economic growth had bottomed out and now stabilized, making the unexpected slowdown of manufacturing growth a really nasty surprise.
AUD/USD dropped from 1.0301 to 1.0286 and AUD/JPY declined from 97.36 to 96.13 as of 17:50 GMT today.
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