The Australian dollar weakened against the other major currencies in the Asian session on Monday, after data showed that the manufacturing sector in China moved further into contraction territory in April.
Data from HSBC Bank showed that the manufacturing sector in China moved further into contraction territory in April, with a PMI score of 48.9. That missed forecasts for 49.4, and it’s down from last month’s preliminary reading that suggested a score of 49.2.
It’s also down from the March score of 49.6, and it moves further beneath the boom-or-bust score of 50 that separates expansion from contraction.
The Australian dollar fell to a 1-week low of 0.7801 against the U.S. dollar, a 6-day low of 93.72 against the yen and a 4-day low of 0.9499 against the Canadian dollar, from last week’s closing quotes of 0.7839, 94.21 and 0.9533, respectively.
Against the euro, the aussie dropped to 1.4345 from Friday’s closing value of 1.4259.
Pulling away from an early 4-day high of 1.0413 against the NZ dollar, the aussie edged down to 1.0377. At Friday’s close, the aussie was trading at 1.0393 against the kiwi.
If the aussie extends its downtrend, it is likely to find support around 0.76 against the greenback, 91.30 against the yen, 0.93 against the loonie, 1.46 against the euro and 1.02 against the kiwi.
The material has been provided by InstaForex Company – www.instaforex.com