Australian dollar slips at noon


The Australian dollar fell after disappointing Chinese manufacturing figures.

At 1200 AEST on Monday, the currency was trading at 96.09 US cents, down from 96.41 cents on Friday.

Rochford Capital senior consultant Derek Mumford said the currency suffered due to news of a slowdown in Chinese manufacturing activity.

The HSBC China Purchasing Managers Index, released on Monday morning, showed the country's key manufacturing sector contracted in May for the first time in seven months.

"That's obviously undermined the Australian dollar yet again," Mr Mumford said.

He said the currency also suffered due to soft Australian retail sales figures, which showed the sector grew by just 0.2 per cent in April.

Mr Mumford said the Australian dollar was likely to trade below 97 US cents during the week and could move back towards 94 US cents.

Meanwhile, Australian bond futures prices were lower at noon.

At 1200 AEST on Monday, the June 10-year bond futures contract was trading at 96.575 (implying a yield of 3.425 per cent), down from 96.635 (3.365 per cent) on Friday.

The June three-year bond futures contract was at 97.360 (2.640 per cent), down from 97.400 (3.600 per cent).