The Aussie dollar is under pressure in Asian trade and stocks in Shanghai and Hong Kong are lower after a big miss this morning in the preliminary HSBC manufacturing PMI which printed 50.3 for August against 51.7 last and 51.3 which the pundits expected.
But it’s not just the headline which was weaker than expected – all of the sub-components showed either weakness or are expanding at a slower rate.
It knocked the Aussie to a two month low of 0.9238 soon after the release and while it has climbed back to 0.9254, the fact that the Euro and and Sterling are under pressure along with Asian stocks suggests the and rallies might meet resistance even with the big interest differential in the Aussie’s favour, given offshore traders are already thinking the local economy is slowing.
This data just might embolden them to see if support at 92 cents which has been solid for the best part of 6 months remains.
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