Australian Dollar Falls After China Manufacturing PMI

The Australian dollar weakened against the other major currencies in the Asian session on Tuesday, after data showed that the manufacturing sector in China dipped into contraction territory in March. Data from HSBC Bank showed that the manufacturing sector in China dipped into contraction territory in March, with a PMI score of 49.2. That was well shy of forecasts for 50.5, and it was down sharply from 50.7 in February. Now at an 11-month low, the index also dipped below the boom-or-bust line of 50 that separates expansion from contraction. The Australian dollar fell to 93.83 against the yen, 1.3930 against the euro and 1.0260 against the NZ dollar, from yesterday's closing quotes of 94.32, 1.3889 and 1.0293, respectively. Against the Canada and U.S. dollars, the aussie dropped to 0.9814 and 0.7836 from an early near 2-month high of 0.9880 and nearly a 4-week high of 0.7901, respectively. At yesterday's close, the aussie was trading at 0.9863 against the loonie and 0.7878 against the greenback. If the aussie extends its downtrend, it is likely to find support around 91.50 against the yen, 1.36 against the euro, 1.01 against the kiwi, 0.96 against the loonie and 0.75 against the greenback.

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