Aussie Recovers After Big Drop

The Australian dollar dipped today after manufacturing data from China disappointed traders. Yet for whatever reason the currency was able to erase the big drop and trades near the opening level right now.

The HSBC Flash China Manufacturing Purchasing Managers’ Index dropped from 51.7 in July to 50.3 in August — the lowest level in three months. While the index remained in an expansionary territory, it is dangerously close to the neutral 50.0 level and is nowhere near the forecast figure of 51.5. China, being Australia’s biggest trading partner, has great influence on performance of the Aussie.

AUD/USD was down from 0.9284 to 0.9236 (the lowest since June 3) before bouncing to the opening level as of 10:56 GMT today. AUD/JPY traded at 96.36 following the drop from 96.33 to 95.99.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *