Dollar bounces back

 

dollar,coin,moneyThe Australian dollar has rebounded back above 93 US cents after losing ground on Thursday on the back of weak Chinese manufacturing data.

At 0700 AEST on Friday, the local currency was trading at 93.03 US cents, up from 92.68 cents on Thursday.

The Australian dollar fell as low as 92.37 US cents on Thursday following the release of the disappointing Chinese data.

The HSBC flash China manufacturing purchasing managers’ index was at 50.3 in August, down from 51.7 in July, a three-month low.

But the Australian dollar has been boosted by the weaker greenback ahead of Friday’s highly anticipated Jackson Hole Summit in the US.

“We’ve seen some profit taking and position unwinding, ahead of the Jackson Hole Fed symposium, which has left yields a little lower and the US dollar lower,” National Australia Bank senior currency strategist Emma Lawson said.

“Pretty much anything could have happened in the data, but it is being ignored ahead of such a well anticipated event.

“And it is likely to remain very, very quiet today, ahead of Fed Chair Janet Yellen’s speech at midnight tonight.

“This forum has been known to signal the Fed’s intentions and at the very least guide market direction with regards to policy. So there is often a lot of anticipation.”

AAP

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