The HSBC Flash estimate of Chinese PMI has just been released and printed much weaker than expected at 48.3. The market had been expecting 49.5 and this is the worst result in more than 6 months.
As Arab Bank’s David Scutt tweeted soon after: “this is the first data we’ve seen that’s both pre-and-post Lunar New Year, and it’s very, very bad”.
As a result the Aussie dollar has come under intense pressure falling half a cent and is sitting at 0.8951 with major support around 0.8910/20 if it falls that far.
Disclaimer: Greg McKenna is an active currency trader who is currently short the Aussie.