Chinese data increased risk aversion
Chinese data once again disappointed: Caixin manufacturing PMI came at 47.0 vs. 47.6 expected. The Asian Development Bank lowered its growth forecast for China to 6.8% for 2015. As a result, fears about the weakening global economy have increased together with the market’s risk aversion.
AUD/USD fell to 0.7019. EUR/USD found support in the 1.1100 area. USD/JPY weakened to 119.60 before recovering to the 120.00 zone.
Chinese President Xi Jinping said that Chinese economy would stay on steady course with relatively fast growth. He also said that the nation would not lower yuan exchange rate in order to boost exports.