The Australian dollar bounced back through the US86.00 cent mark as lower than expected manufacturing numbers and lackluster Inflation data failed to please Investors. Today the Australian dollar is trading at around US86.37 cents 4.47pm (AEDT) up from US86.19 cents yesterday.
Manufacturing in the US fell in November to its lowest rate of growth since January and new orders also fell for a third straight month. The Index fell to 54.7 from October’s reading of 55.9 coming in under analysts’ expectations of 56.4.
A major factor in the decline of the Index may be the recent strength of the US dollar putting pressure on exports and raising the costs for overseas buyers.
“Export market weakness holds the key to the recent slowdown, with manufacturers reporting the largest drop in export orders for nearly one and a half years,” said Chris Williamson, chief economist at Markit.
Latest Inflation figures from the US came in slightly above estimates although considerably lower than the US central bank’s Inflation target of 2%. Year on year Inflation rose to 1.7% in October against a reading of 1.6% in the previous month.
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