Investing.com - The Australian dollar was lower against its U.S. counterpart on Monday, as signs of a contraction in Chinese manufacturing activity for the sixth consecutive month and disappointing Australian economic data weighed on the Aussie.
AUD/USD hit 1.0327 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0329, shedding 0.48%.
The pair was likely to find support at 1.0296, the low of April 12 and resistance at 1.0402, the high of March 29.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
On the index, a reading above 50.0 indicates industry expansion, below indicated contraction.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis in the euro zone.
Meanwhile, official data showed that producer price inflation in Australia fell unexpectedly in the first quarter, edging down 0.3% after a 0.3% rise the previous quarter. Analysts had expected producer price inflation to rise 0.5% in the first quarter.
The data added to expectations for a rate cut by the Reserve Bank of Australia at its policy meeting this week.
Elsewhere, the Aussie was lower against the euro with EUR/AUD adding 0.14%, to hit 1.2752.
Sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.
AUD/USD hit 1.0327 during late Asian trade, the daily low; the pair subsequently consolidated at 1.0329, shedding 0.48%.
The pair was likely to find support at 1.0296, the low of April 12 and resistance at 1.0402, the high of March 29.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
On the index, a reading above 50.0 indicates industry expansion, below indicated contraction.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis in the euro zone.
Meanwhile, official data showed that producer price inflation in Australia fell unexpectedly in the first quarter, edging down 0.3% after a 0.3% rise the previous quarter. Analysts had expected producer price inflation to rise 0.5% in the first quarter.
The data added to expectations for a rate cut by the Reserve Bank of Australia at its policy meeting this week.
Elsewhere, the Aussie was lower against the euro with EUR/AUD adding 0.14%, to hit 1.2752.
Sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.