The Caixin Composite PMI for China has dipped below the neutral 50 mark, showing that the Chinese economy contracted slightly in December, causing commodity-correlated currencies such as the Australian Dollar to plunge in value.
The news comes after an accelerated contraction in the manufacturing sector caused a major domestic stock sell off, with the Shangai index dropping almost 7% before a new ‘circuit breaker’ feature was activated to shut off the markets early and prevent further volatility.
AUD exchange rates are currently slumping, with the Australian Dollar losing -0.4% against the New Zealand Dollar (NZD), -0.5% against the Canadian Dollar (CAD), -1.2% against Pound Sterling (GBP) and -1.3% against the US Dollar (USD).
