SYDNEY/WELLINGTON: The Australian dollar trimmed gains against the US dollar on Thursday after weak Chinese data added to concerns about demand for Australia's commodity exports.
The HSBC Flash China manufacturing PMI fell to 47.8 in August, its lowest since November, from 49.5 in July.
The weak reading adds to fears of a marked slowdown in China following a run of disappointing economic data. The Australian dollar is very sensitive to news out of China, its biggest export market.
Still, the pullback in the Aussie was limited by speculation of more stimulus in the United States after minutes of the Federal Reserve's last policy meeting showed it could announce quantitative easing "fairly soon".
Aussie at $1.0516, off an early 10-day peak of $1.0546 but still up from $1.0440 before the Fed news. Support seen around $1.0480 ahead of $1.0440 with resistance at $1.0567-77.
Aussie not helped after Australia's resources minister says the mining boom is over. The comment followed a cautious outlook from miner BHP Billiton on Wednesday.
Kiwi up 0.4 pct on the day to $0.8164, having touched a two-week high of $0.8187. A sustained break of $0.8179, the 76.4 pct retracement of the $0.8224-$0.8037 move, would suggest a test of $0.8224, the four-month peak hit earlier in August.
Traders cited a large buying order from a Swiss name for private clients.
Euro hold gains against the Aussie at A$1.1927, but dips 0.3 pct on the kiwi to NZ$1.5344. Euro rose to multi-week highs against both currencies overnight.
Australian government bonds rise sharply with the three-year Australian contract up 0.08 points at 97.320, while the 10-year contract adds 0.07 points to 96.775.
New Zealand government bonds mixed with yields as much as 3 basis points higher at the short end.
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