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Australian Dollar Loses After Chinese PMI Disappoints

Australian Dollar Loses After Chinese PMI Disappoints

Eric Andersen,

THE TAKEAWAY: Chinese Non-Manufacturing PMI Fell to 56.1 in April > Fears of Global Growth Slowdown Enhanced, Leading Traders to Adjust Portfolios > AUDUSD Fell

Australian_Dollar_Loses_After_Chinese_PMI_Disappoints_body_Picture_5.png, Australian Dollar Loses After Chinese PMI Disappoints

Data published by the China Federation of Logistics and Purchasing shows that the country’s non-manufacturing purchasing managers’ index dropped to 56.1 in April from 58.0 in March. The negative figure continued a series of indicators over the past few months that suggested a drop off in Chinese growth.

A cooling Chinese economy is a drag on local nations that rely on the country for trade. As fears of a global slowdown of economic growth were renewed, traders sold currencies native to exporting countries reliant on Chinese consumption, like the Aussie.

The Australian dollar follows poor Chinese PMI since a weak Aussie export sector would suggest that the likelihood of a central bank rate cut is more likely. The AUDUSD fell from 1.0311 as low as 1.0303 in the moments after the index’s release.

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

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