Australian Dollar Falls as Chinese PMI Data Falls Short of Expectations
- Chinese Manufacturing PMI fell to 48.3 in February vs. 49.5 Expected
- Mixed China Data could Weigh on RBA Interest Rate Prospects
- The Australian Dollar Fell Against the Euro, British Pound and the US Dollar
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
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