Investing.com - The Australian dollar fell to a session low against the U.S. dollar in thin trade on Wednesday after data showed that manufacturing activity in China slowed in April.
AUD/USD hit 1.0354 during late Asian trade, the session low; the pair subsequently consolidated at 1.0353, shedding 0.16%.
The pair was likely to find support at 1.0328, Tuesday’s low and resistance at 1.0384, Tuesday’s high.
The Australian dollar weakened after official data showed that China’s manufacturing purchasing managers' index ticked down to 50.6 from an 11-month high of 50.9 in March, as new export orders fell. China is Australia’s largest export destination.
Trade volumes remained light during the Asian session with most markets closed for holidays, while many bourses in Europe were set to remain shut for the Labor Day holiday.
The greenback’s gains looked likely to remain limited ahead of the outcome of the Federal Reserve’s policy meeting later in the session after recent soft U.S. economic data dampened expectations for an earlier-than-expected end to the Fed’s asset purchase program.
Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.
The data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth.
The Aussie was lower against the New Zealand dollar and the yen, with AUD/NZD sliding 0.23% to 1.2079 and AUD/JPY down 0.19% to 100.82.
The U.S. was to data on ADP nonfarm payrolls report later in the trading day, while the Institute of Supply Management was release data on manufacturing activity.
AUD/USD hit 1.0354 during late Asian trade, the session low; the pair subsequently consolidated at 1.0353, shedding 0.16%.
The pair was likely to find support at 1.0328, Tuesday’s low and resistance at 1.0384, Tuesday’s high.
The Australian dollar weakened after official data showed that China’s manufacturing purchasing managers' index ticked down to 50.6 from an 11-month high of 50.9 in March, as new export orders fell. China is Australia’s largest export destination.
Trade volumes remained light during the Asian session with most markets closed for holidays, while many bourses in Europe were set to remain shut for the Labor Day holiday.
The greenback’s gains looked likely to remain limited ahead of the outcome of the Federal Reserve’s policy meeting later in the session after recent soft U.S. economic data dampened expectations for an earlier-than-expected end to the Fed’s asset purchase program.
Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.
The data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth.
The Aussie was lower against the New Zealand dollar and the yen, with AUD/NZD sliding 0.23% to 1.2079 and AUD/JPY down 0.19% to 100.82.
The U.S. was to data on ADP nonfarm payrolls report later in the trading day, while the Institute of Supply Management was release data on manufacturing activity.