The Australian dollar dropped more than 1 percent today, reaching the lowest level in more than 6 years against its US counterpart. The reason for the slump was the depressing manufacturing data from China.
According to the Markit/Caixin survey, the flash China’s manufacturing PMI unexpectedly dropped from 49.4 to 48.2 in July — the weakest reading in more than a year. The news was very negative to Aussie, suggesting lower demand for raw materials shipped from Australia.
Yesterday, Standard & Poor’s affirmed Australia’s credit ratingat AAA/A-1+ with a stable outlook, but warned:
We could lower the ratings if Australia’s budgetary performance does not improve broadly as we currently expect.
AUD/USD sank from 0.7351 to 0.7276 as of 13:39 GMT today, touching the low of 0.7259 intraday — the weakest rate since May 2009. AUD/JPY tumbled from 91.10 to 90.11.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
Be First to Comment