As the Australian dollar pulled back further from its 2014 high this week amid more sub-par Chinese economic data, analysts say the commodities-linked currency may have topped out.
China’s factory activity data contracted for the fourth straight month in April, the final Markit/HSBC Purchasing Managers’ Index showed on Monday. The data knocked the Aussie down to $0.9250 on Monday, well below its yearly high of near $0.95.
“The slowdown in Chinese manufacturing demand appears to be a significant long-term trend, and as such the news is likely to keep a cap on Aussie-greenback which saw some further selling pressure in Asian dealing Monday,” said Boris Schlossberg, managing director at BK Asset Management.
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