Australian Dollar went lower after China debt report

Australian currency fell sharply today after a report saying that China wrote off three times more bad loans in the first half of the year. At 12pm AEDT today, the local dollar was trading at 96.33US cents down from 96.53US cents yesterday.  Yesterday, the local currency touched five month high of 97.58 US cents, after the release of September quarter inflation figures.

Earlier today, market experts were saying that if China Manufacturing Index (PMI) from HSBC comes positive then it can give a boost to Australian currency and later today after a positive China PMI (seven month-high) data from HSBC things happened as speculated; the Australian dollar (AUD) rose and traded higher against its U.S. (USD) counterpart. In today's trading, AUD rose 0.38 per cent to 0.9660. Being China as the largest export market of Australia, AUD is affected largely by Chinese market data and market figures.

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