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BS:Aust dollar falls on US woes
 
The Australian dollar is lower following disappointing Chinese manufacturing data and political woes in Italy and the United States.

At 1700 AEST, the local unit was trading at 93.08 US cents, down from 93.61 cents on Friday.

In the US, lawmakers have one final day to try to prevent the first US government shutdown in 17 years, but a deal appears remote.

Congress must pass a stop-gap funding measure before the new fiscal year begins on Tuesday, or much of the US federal government will close down.

In Italy, billionaire media tycoon Silvio Berlusconi sparked crisis after spurring five ministers from the People of Freedom (PDL) party to resign from the coalition government.

Forex.com research analyst Chris Tedder said the Australian dollar was also hampered by the release of HSBC's final Chinese manufacturing index for September, although it managed to recover some ground late in the day.

The index came in at 50.2 points, down from the preliminary estimate of 51.2, released a week ago.

Mr Tedder said the market would now be looking at what happens in the US and Italy overnight.

"We've got the continuing negotiations between the Republicans and Democrats and whether they can avoid a partial government shut down," he said.

"In Italy, the political wrangling is causing some disruption in peripheral bond markets throughout Europe and there's concern that could weigh on overall sentiment."
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