The Australian Dollar weakens after China’s official manufacturing PMI contracts, weighing on risk sentiment and commodity-linked currencies.
The AUD/USD pair retreated to around 0.7020 in Asian trading on Friday, paring over 1% gains from the previous session. The decline followed the release of China’s National Bureau of Statistics Manufacturing PMI, which fell in July, signaling contraction in the sector.
China’s PMI data is closely watched as a barometer for regional economic activity, particularly for Australia, a major commodity exporter. The softer-than-expected print contrasts with recent stabilization efforts in China’s economy and adds pressure on risk-sensitive assets.
The Australian Dollar’s pullback reflects broader concerns over demand from its largest trading partner, though the pair remains near recent highs after a volatile week.