Aussie Drops After Chinese Manufacturing Report

The Australian dollar dropped today after a report showed an unexpected contraction of the Chinese manufacturing sector. The data made investors worried about growth in the Asian economy and made them less willing to buy riskier assets.
The HSBC Flash China Manufacturing Purchasing Managers’ Index fell to 49.6 in January from 50.5 in December. It was the lowest reading in six months. Analysts have expected the gauge to stay unchanged. The news was detrimental to currencies linked to growth.
AUD/USD fell from 0.8850 to 0.8796 and AUD/JPY dropped from 92.49 to 91.86 as of 3:56 GMT today.

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