GBP/AUD: Aussie Weakens on Manufacturing Data Released by Australia, China 

GBP/AUD slightly increases on Thursday, though it has shown no direction since the first day of the year, after rallying on New Year’s Eve. Currently, one British pound buys 1.8889 Australian dollars, up 0.03% as of 6:45 AM UTC. 

The Aussie has been under increased pressure since yesterday after IHS Markit and Commonwealth Bank of Australia (CBA) released the manufacturing purchasing managers’ index (PMI) data for December. The indicator declined to a record low last month — to 49.2, from 49.9 in November. Analysts expected a decline to 49.4. The first such survey was conducted in May 2016. 

Australia’s manufacturing industry was dragged down by record declines in new orders and output. Also, weakening sales expanded the spare capacity, which led to a decrease in employment. 

The PMI figure is elaborated from questions related to output, new orders, employment, input inventories, and delivery times. 

Besides, the Australian currency was dragged down by China’s factory activity data. Earlier today, Caixin said that China’s manufacturing purchasing managers’ index (PMI) expanded at a slower pace. 

The index slowed last month to 51.5 from 51.8 in November, while analysts expected no change. Nevertheless, the reading maintained above the 50 mark that separates expansion from contraction. 

Production continued to grow at a decent rate, and business confidence increased amid easing trade tensions between the US and China. US President Donald Trump said that the two countries would sign the phase one trade deal on January 15. 

The Caixin manufacturing PMI was less optimistic than the official index released on Tuesday. China’s National Bureau of Statistics said that the manufacturing industry had expanded in December. 

However, Caixin’s index still showed an improvement in business confidence. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, commented:

Subdued business confidence was a major factor behind the economic slowdown this year. As the phase one trade deal between China and the US has sent out positive signals, there is room for a recovery in business confidence, which should be able to help stabilize the economy.”

The pound might become more volatile and decline later today after the UK releases manufacturing data as well. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.