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Australian Dollar Falls as Chinese PMI Data Falls Short of Expectations

By Daniel Giardina
20 February 2014 03:27 GMT

Talking Points:

The Australian Dollar dropped after HSBC reported its Flash Manufacturing PMI gauge came in at 48.3 in February, below estimates calling for a print at 49.5 and down from 49.5 recorded in January. The Aussie dropped 60 pips from 0.9012 to 0.8949, reversing its gains from earlier in the week.

A contraction in manufacturing in the world’s second-largest economy solidifies evidence that a slowdown has continued into 2014. Australia is China’s biggest trading partner and weaker demand from the East Asian giant threatens to undermine demand for the pivotal mining sector, fueling bets that the RBA won’t hike interest rates again in the near term.

AUD/USD (5min Chart) - Created with Marketscope 2.0 by Daniel Giardina

Australian_Dollar__Falls_as_Chinese_PMI_Data_Falls_Short_of_Expectations_body_China_PMI_220.png, Australian Dollar  Falls as Chinese PMI Data Falls Short of Expectations

Written By Daniel Giardina, any suggestions, feedback, or comments please email dgiardina@fxcm.com

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20 February 2014 03:27 GMT