The Australian dollar fell against most major counterparts in the Asian session on Thursday after a report showed that China manufacturing activity declined to its lowest level in nine months in June.
A survey by HSBC and Markit Economics showed today that the flash manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May. Readings below 50 suggests contraction of the sector.
The manufacturing output index fell to 48.8 from 50.7 in May. This was at its lowest level in eight months.
The aussie suffered huge loss after Federal Reserve Chairman Ben Bernanke yesterday signaled the possibility to moderate Quantitative easing program later this year if economic conditions warrant.
"The committee currently anticipates that it will be appropriate to moderate the monthly pace of purchases later this year, and if the subsequent data remain broadly aligned with our current expectations for the economy, we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year," Bernanke said at a press conference explaining the decision.
The aussie slipped to 0.9239 against the greenback for the first time September 2010. This is down almost 0.6 percent from Wednesday's New York session close of 0.9290. The aussie may seek support around 0.91 level.
The aussie dipped to near a 3-year low of 0.9506 against the Canadian dollar, losing 2.2 percent for the week. If the bear run continues, next visible support for the aussie-loonie pair lies around 0.94 level. At Wednesday's close, the pair ended deals at 0.9554.
The aussie fell to a 1-week low of 89.09 against the yen, reversing from Wednesday's 2-day high of 91.17. The next support level for the aussie-yen pair sits around 88.5 level.
The aussie reached 1.4358 against the euro, a level not seen since October 2010. The aussie may find next downside target level around 1.45. The euro-aussie pair was worth 1.4284 at yesterday's close.
In the European session, Switzerland's trade data, German producer prices and U.K. retail sales - all for May, PMIs from major European economies and Eurozone flash consumer sentiment index for June are due.
Swiss National Bank interest rate decision is scheduled for release at 3:30 am ET. The central bank is expected to retain EUR/CHF peg at 1.2 and 3-month LIBOR in range of 0.00 - 0.25 percent.
The U.S. weekly jobless claims for the week ended June 15 and existing home sales for May are set for release in the New York session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.