The Australian dollar has taken a heavy blow in Thursday trade; the currency was looking vulnerable already ahead of a poor showing from the Chinese manufacturing sector.
A look at the latest Australian dollar (Currency:AUD) spot rates shows the currency to be universally under pressure:
The pound to Australian dollar exchange rate is 0.62 pct higher at 1.5614.
The euro to Australian dollar is 0.7 pct higher at 1.3352.
The Australian dollar to US dollar exchange rate is 0.64 pct higher at 0.9637.
(It is important to keep in mind that the above quotes are taken from the wholesale markets, your bank will affix their own discretionary spread. However, an independent provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.)
"The Chinese PMI data came out at 49.6, down from the April final reading of 50.4 and below consensus. The new orders sub-component fell below the 50 boom/bust level at 49.5, while the employment component also showed contraction at 49.0. Chinese equities have remained flat though; sometimes it’s just incredible how this market dances to its own beat," says Chris Weston, IG Analyst in Melbourne.
Lloyds Bank, in a morning foreign currency strategy note say the outlook for the Australian dollar appears to be bearish:
"Both AUD and NZD have suffered from the recent USD strength of late, but AUD has been more vulnerable to USD gains. AUD/USD traded to the lowest level since mid 2012 overnight – further weighed by the weaker China data.
"While AUD may well continue to underperform NZD, AUD/NZD has struggled to gain much downside momentum, struggling around the 1.20 level.
"The relative rate spreads suggests some scope for a move lower (chart 1 on page 2) but for now the 2009 low of 1.1934 should provide decent support."