Australian dollar slips below 71 cents as Chinese PMI blips higher

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by Chris Becker

Overnight the Australian dollar slumped in reaction to the US 4Q GDP print, falling to just below the 71 handle against USD and has maintained that weakness throughout the session today. The latest Caixin manufacturing PMI blipped higher to almost reach the expansion point at 50, coming in unexpectedly at 49.9:

source: tradingeconomics.com

There’s been a bit of waffling around the 71 handle this morning but generally the Pacific Peso is looking weak here:

This is on the back of yesterday’s official release which is still seeing a general slowdown in Chinese manufacturing capacity, but the Chinese National Bureau of Statistics were much more upbeat so perhaps an amalgam is more appropriate.

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The PBOC has kept the onshore Yuan fix steady at 6.6957, slightly weaker than yesterday’s 6.6901 fix with offshore Yuan trading lower with the USDCNH pair about to breach the 6.70 level after bottoming out most of the week:

No news is probably good news surround the US/China trade talks as the NK summit fizzles out to nothing as the Great Dealmaker returns home.

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