Australian dollar falls on Chinese manufacturing data

THE Australian dollar has hit another post Christmas low, as the fallout from Monday’s weak Chinese manufacturing figures overshadows currency markets.

THE Australian dollar has hit another post Christmas low, as the fallout from Monday’s weak Chinese manufacturing figures overshadows currency markets.

At 0700 AEDT on Wednesday, the local unit was trading at 71.52 US cents, down from 71.99 cents on Tuesday.

Early on Wednesday morning, it fell as low as 71.32 US cents, its weakest level since, December 18.

Bank of New Zealand currency strategist Jason Wong said although US stocks were in a healthier condition the Australian dollar is being held back by weaker commodity prices.

“It was a more normal overnight trading session, following the big risk-off move on Monday night,” he said.

“The Australian dollar has started the year off on a weak note, not helped by weaker commodity prices.”

In economic news on Wednesday, the Australian Industry Group releases its Performance of Services Index for December, and the car industry will announce its annual sale results.

CURRENCY SNAPSHOT AT 0700 AEDT ON WEDNESDAY

One Australian dollar buys:

* 71.52 US cents, from 71.99 cents on Tuesday

* 85.09 Japanese yen, from 86.00 yen

* 66.56 euro cents, from 66.47 euro cents

* 106.82 New Zealand cents, from 106.87 NZ cents

* 48.77 British pence, from 48.90 pence

(*Currency closes taken at 1700 AEDT previous local session)

Source: IRESS