Aussie drops to fresh multi-year lows against greenback Investing.com - The Australian dollar tumbled to fresh six-year lows against its ...
Aussie drops to fresh multi-year lows against greenback
Investing.com - The Australian dollar tumbled to fresh six-year lows against its U.S. counterpart on Monday, as Friday's weak factory data from China continued fuel concerns over global growth.
AUD/USD hit 0.7201 during late Asian trade, the pair's lowest since April 2009; the pair subsequently consolidated at 0.7238, down 1%.
The pair was likely to find support at 0.6854 and resistance at 0.7361, Friday's high.
Data on Friday showed that manufacturing activity in China contracted at the fastest rate in six-and-a-half years in August, exacerbating fears over a slowdown in the world’s second-largest economy.
The preliminary reading of the Caixin China manufacturing purchasing managers' indexcame in at 47.1, down from July's final reading of 47.8.
It was the weakest level since March 2009 and was well below the 50 level separating expansion from contraction.
The weak data underlined fears over the outlook for global growth.
Financial markets have been roiled since China devalued the yuan on August 11, sparking a selloff in equities, commodities and emerging-market assets.
China is Australia's biggest export partner.
The Aussie was sharply lower against the euro, with EUR/AUD jumping 1.53% at 1.5810.