Aussie dragged China Manufacturing Decline

The Australian dollar or the Aussie weakened against its main currency pairs to respond to a contraction in China's manufacturing sector in August reported a worse than expected. China is a major trading partner of Australia who consume more than 60% of iron ore, Australia's main exports. Iron ore prices weakened for the first time this week, abolish the five-week streak of gains, as the impact will be a decrease in demand from Beijing. Pessimism manufacturing sector that indicate a worsening condition of the world's second largest economy also reinforces expectations of a decrease in demand for iron ore from China.

China reported its manufacturing index fell to 47.1 for August, worse than the 47.7 estimated by analysts polled by Reuters and the previous data were revised down to 47.8. The data is below 50 indicates contraction or deceleration conditions.

Australian dollar into major currencies that give the worst performance for the Asian session this morning. At 10:06 pm, the pair NZDUSD has succeeded in reducing the impact of the slowdown in China's manufacturing sector, while the AUDUSD is still down about 0.4% in the range of 0.7308. Australian dollar had dropped to a daily low of 0.7285 or -0.67% responding to the data Caixin / Markit Manufacturing Index at 08:45 GMT.