03.08.2015 - Data from China has negative impact on the Australian dollar

The Chinese economy continues to put pressure on investor sentiment. Thus, on Saturday was published data showing that the country's manufacturing PMI fell by 0.2, to the psychologically important level of 50.0. The indicator value below 50.0 is pointing to contraction in the sector. Analysts said the drop was due to seasonal maintenance work and modernization of equipment in factories of the country. Due to the fact that China is a major consumer of Australian exports, we expect a further decline in the Australian dollar against the backdrop of weak statistics from China, as well as lower commodity prices and loose monetary policy of the RBA.

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