Investing.com - The Australian dollar held weaker after a key China manufacturing survey Wednesday pointed to weaker conditions than estimated initially, with the currency linked to China's economic fortunes as a top destination for commodity exports.
AUD/USD traded at 0.7075, down 21%, while USD/JPY changed hands at 120.22, up 0.05%.
The Caixin Manufacturing index for September fell to 47, from the August level of 47.3, putting it at a 78-month low.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% to 96.64.
Overnight, the dollar continued to rise against against the other major currencies in quiet trade on Tuesday, as trading volumes were expected to remain thin with no major U.S. data to be released and as the greenback remained supported by hopes for an upcoming U.S. rate hike.
The dollar remained supported after comments by some Federal Reserve officials overnight indicated that a U.S. rate hike is still on the cards this year.
St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart indicated in separate remarks that the U.S. central bank is still likely to raise short-term interest rates this year.
Investors were looking ahead to a speech by Fed Chair Janet Yellen later in the week for additional clarity on the bank’s decision last week to leave interest rates on hold.
Markets in Japan remained closed for a second day on Tuesday for a national holiday.