The Australian dollar dropped lower on Tuesday, as Chinese manufacturing data weighed on the Southern Hemisphere heavy weight. Data showed that Chinese manufacturing activity swung into contraction territory earlier this month, as the Purchasing Managers Index (PMI) data fell to an 11 month low of 49.2, following expectations of 50.6. The reason Chinese data holds such an impact on the Australian dollar is because China is Australia’s biggest export partner.
The New Zealand dollar managed to hold its high position against its US counterpart on Tuesday. Although the Chinese manufacturing data also had some impact on the New Zealand currency, it still finished the day in a strong position, as its core exports are the softer commodities primarily dairy products.
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