The Australian dollar slipped at the start of the current trading session but rebounded and trades above the opening level as of now. The decline was caused by the worse than expected China’s manufacturing data released over the weekend.
The HSBC Flash China Manufacturing Purchasing Managersâ Index dipped from 48.5 in February to 48.1 in March, while analysts have expected an increase to 48.7. Usually, poor economic reports from China push the Australian currency down, but this was not the case today. It looks like market participants believe that not only an interest rate cut is unlikely but also that an interest rate hike is possible. Such view is bullish for the Aussie.
AUD/USD slid from 0.9100 to 0.9046 but bounced and traded at 0.9118 as of 11:40 GMT today. AUD/JPY advanced from 92.95 to 93.38 following the drop to 92.57.
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