The Australian dollar dipped intraday due to disappointing manufacturing data from China but has managed to recover as of now, at least against the US dollar and the Japanese yen.
The Caixin China General Manufacturing PMI ticked up a little from 48.2 to 48.4 in January but remained below the neutral 50.0 level. Government data also indicated contraction of the sector. This bodes ill for the whole global economy, but for the economy of Australia in particular due to the close trading ties between China and Australia.
AUD/USD was down from 0.7079 to 0.7042 intraday but bounced to back the opening level as of 17:03 GMT today. AUD/JPY traded at 85.73 after falling from 85.91 to 85.30 during the trading session.
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