Aussie Dollar, Chinese Yuan Slip on Disappointing Chinese PMI Report
- HBSC China Manufacturing PMI 50.3 for August vs. 51.5 Expected, 51.7 in July
- China’s Manufacturing Sector Recorded the Slowest Expansion in Three Months
- Aussie Dollar and Chinese Yuan Fall After Soft PMI Data Disappointed Investors
The Chinese Yuan fell after HBSC reported its preliminary Chinese Manufacturing PMI figure for August. The release printed at 50.3, the lowest reported in the last three months. The figure also came in lower than market expectations of 51.5 and last month’s 51.7.
The Chinese Yuan likely fell because the lower-than-expected PMI figure reflected a slowdown in the world’s second-largest economy that may open the door for Beijing to introduce additional stimulus measures. The Australian Dollar also slipped after the report was released. China is Australia’s largest trade partner and weakening activity there does not bode well for Australia’s exports, which may weigh on broader growth trends and undermine RBA rate hike prospects.
USDCNH [15 mins – 08/21/2014]. Chart created using FXCM Marketscope.
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