Investing.com - The Australian dollar pared its losses against its U.S. rival during Thursday’s session, but was still spotted lower following the release of China’s official July PMI data.
In Asian trading Thursday, AUD/USD fell 0.17% to 0.8970 after earlier trading as low as 0.8928. Still, that took the pair below prior support at 0.8999.
China’s PMI read 50.3 in July, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. Economists expected a reading of 49.8. The June reading was 50.1. Readings above 50 indicate expansion. China is Australia’s largest export market.
On Wednesday, the Australian Industry Group said its manufacturing index fell 7.6 points to 42 last month, marking the worst decline since April.
Also on Wednesday, Reserve Bank of Australia Governor Glenn Stevens said the country’s current inflation situation gives the central bank room to consider additional rate cuts. RBA’s benchmark rate is currently a record low of 2.75%.
However, the remarks from Stevens are seen as having given traders reason to bet against further Aussie declines.
Traders see a 92% chance RBA will cut rates following its August 6 meeting up from 75% a week, according to Bloomberg. Traders are expecting a 25-basis point cut next week and more than 50 basis points in additional cuts for the rest of this year.
Elsewhere, AUD/JPY inched down 0.02% to 87.96 while AUD/NZD rose 0.11% to 1.1264.
In Asian trading Thursday, AUD/USD fell 0.17% to 0.8970 after earlier trading as low as 0.8928. Still, that took the pair below prior support at 0.8999.
China’s PMI read 50.3 in July, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. Economists expected a reading of 49.8. The June reading was 50.1. Readings above 50 indicate expansion. China is Australia’s largest export market.
On Wednesday, the Australian Industry Group said its manufacturing index fell 7.6 points to 42 last month, marking the worst decline since April.
Also on Wednesday, Reserve Bank of Australia Governor Glenn Stevens said the country’s current inflation situation gives the central bank room to consider additional rate cuts. RBA’s benchmark rate is currently a record low of 2.75%.
However, the remarks from Stevens are seen as having given traders reason to bet against further Aussie declines.
Traders see a 92% chance RBA will cut rates following its August 6 meeting up from 75% a week, according to Bloomberg. Traders are expecting a 25-basis point cut next week and more than 50 basis points in additional cuts for the rest of this year.
Elsewhere, AUD/JPY inched down 0.02% to 87.96 while AUD/NZD rose 0.11% to 1.1264.