The Australian dollar touched the lowest level in more than two years against its US peer today as China’s manufacturing slowed more than was expected and the US Federal Reserve signaled that it may tamper its quantitative easing later this year.
The HSBC Flash China Manufacturing Purchasing Managers’ Index fell from 49.2 in May to 48.3 in June. Market participants have anticipated a small increase to 49.4. The reading below 50.00 indicates decline of the sector. The Aussie performed similar to its New Zealand counterpart, falling against the US currency, but rising against the Japanese one.
AUD/USD slid from 0.9290 to 0.9198 as of 13:28 GMT today and its daily low of 0.9162 was the lowest price since September 2010. AUD/JPY advanced from 89.58 to 89.95.
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