Aussie Pares Biggest Weekly Drop Since August After China PMI

Australia’s dollar halted declines that have it on course for the biggest weekly loss since August after a Chinese report showed manufacturing strengthened last month at a quicker pace than economists had forecast.

The currency was also supported after data in Australia and South Korea indicated expanding factory output, adding to signs of stabilization of growth in the region. New Zealand’s currency was poised for its first back-to-back weekly losses in two months.

The Australian currency rose 0.1 percent to 94.62 U.S. cents as of 12:37 p.m. in Sydney, set for a 1.3 percent weekly drop, the most since the five days ended Aug. 30. It bought 92.99 yen, from 93 yesterday and has weakened 0.4 percent since Oct. 25.

The kiwi fell 0.1 percent to 82.56 U.S. cents, poised for a 0.3 percent weekly decline. It slid 0.2 percent to 81.13 yen.

The official manufacturing Purchasing Managers’ Index (CPMINDX) for China climbed to an 18-month high of 51.4 in October, compared with 51.1 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. The reading compares with the median estimate of 51.2 in a Bloomberg News survey, with a number above 50 indicating growth.

A manufacturing index in Australia climbed to 53.2 last month, the highest since 2010, the Australian Industry Group said in a report today. Measures of production, employment, exports and new orders increased while those for inventories, deliveries and average wages declined. South Korea’s manufacturing PMI rose to 50.2 from 49.7, according to a report from HSBC and Markit Economics.

(Source; Bloomberg)