China re-submerge Aussie

Australia's main trading partners, China, again gave a severe blow to the exchange rate of the Australian dollar on Tuesday. Data poor Chinese manufacturing activity further increased concerns about an economic slowdown in the world's second largest, bringing the Australian dollar fell to a new six-year low.

Data from the Chinese government showed a decrease in manufacturing activity index to 49.7 in August from 50.0 in the previous month of July. The figure 49.7 shows contraction and the lowest level in the last three years. Meanwhile Caixin version manufacturing activity index fell to its lowest level in six years in August.

While the Reserve Bank of Australia (RBA) in monetary meeting on Tuesday decided to keep interest rates at 2.0%. The central bank reiterated the Australian dollar exchange rate is now adjusting to the decline in commodity prices. When first raised at the monetary meeting in August, the RBA statement made the aussie rally, but on Tuesday, can not help the Australian dollar to rise.

Attention today focused on gross domestic product data (PGB) Australia second quarter are expected to grow by 0.4%, from the first quarter grew 0.9%. RBA in a statement yesterday also menebut Australian economy grew slightly below the long term average.

AUDUSD on Tuesday, ending at the level of 0.7015, with daily highs 0.7153, and 0.7012 lows. While today (02/9) until around 06:17 pm, AUDUSD continued weakening, is around 0.7006