News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Australian Dollar Sold as Chinese PMI Data Disappoints

Australian Dollar Sold as Chinese PMI Data Disappoints

Eric Andersen,

THE TAKEAWAY: Chinese Manufacturing PMI Rose to 53.3 in April > Fears of Global Growth Slowdown Renewed, Leading Traders to Adjust Portfolios > AUDUSD Fell

Australian_Dollar_Sold_as_Chinese_PMI_Data_Disappoints_body_Picture_5.png, Australian Dollar Sold as Chinese PMI Data Disappoints

Data published by the China Federation of Logistics and Purchasing shows that the country’s manufacturing purchasing managers’ index increased to 53.3 in April from 53.1 in March. This change surprised traders who expected a slightly larger figure of 53.6 and initiated an AUDUSD selloff following the figure’s release.

A growing Chinese economy is a boon to local nations that rely on the country for trade, but today’s data release did not convince traders that the nation’s economy is poised to reverse its deceleration of growth. As fears of a global slowdown of economic growth were rekindled, traders sold currencies native to exporting countries reliant on Chinese consumption, like the Aussie.

The Australian dollar follows poor Chinese PMI since a faltering Aussie export sector would suggest that the likelihood of a central bank rate cut is more likely.

In the moments after the release, the AUDUSD fell from 1.0420 to 1.0412.

Overall, price action on the Aussie was minimal as traders focus on the RBA rate decisiondue out later this morning. Currently, analysts overwhelmingly expect an interest rate cut from 4.25 percent to 4.00 percent.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.