Australian dollar is dented by dismal China factory poll

Australian dollar is dented by dismal China factory poll

On Thursday, the Australian dollar went down, reacting to a private poll, which unveiled that China's manufacturing activity suddenly dived in May, thus casting a cloud over the world economic outlook.

The Caixin/Markit Manufacturing Purchasing Managers' index sank to 49.6, pointing to a contraction for the first time for 11 months and ruining market expectations.

The Caixin report, traditionally focusing on smaller firms, steeply contrasted with official results on Wednesday, which had demonstrated steady manufacturing surge in China.

The Australian dollar went down 0.5%, reaching $0.7396. It declined to $0.7384 at one point, which is its lowest value since May 12.

Meanwhile, the Chinese Yuan contributed to the revenues made on Wednesday, when the Asian currency ascended on views that China's major financial institution is currently less inclined to enable the currency to weaken markedly versus the greenback.

The onshore Yuan tacked on to as high as 6.7878 per greenback, showing its best result since November.

 

 

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