Forex - AUD/USD lower on disappointing Chinese data

Published 07/24/2013, 02:42 AM
Updated 07/24/2013, 02:45 AM
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Investing.com - The Australian dollar was lower against its U.S. counterpart on Wednesday, as downbeat Chinese manufacturing data added to concerns over the outlook for growth in the world's second largest economy.

AUD/USD hit 0.9243 during late Asian trade, the session low; the pair subsequently consolidated at 0.9257, dropping 0.41%.

The pair was likely to find support at 0.9174, the low of July 21 and resistance at 0.9345, the high of June 26.

The preliminary reading of China’s HSBC manufacturing purchasing managers’ index fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6.

China is Australia's biggest export partner.

In Australia, official data showed that consumer price inflation remained unchanged at 0.4% in the second quarter, confounding expectations for an uptick to 0.5%.

Trimmed mean consumer price inflation, which excluded the most volatile 30% of items, rose to 0.5% in the last quarter, from 0.4% in the first quarter, in line with expectations.

Meanwhile, the greenback remained supported as weaker U.S. data recently dampened expectations that the Federal Reserve will scale back its easing program later this year.

The Aussie was lower against the euro with EUR/AUD rising 0.20%, to hit 1.4254.

Later in the day, the U.S. was to produce official data on new home sales.


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