The Australian dollar has led risk assets lower across Asia after a survey on Chinese manufacturing missed forecasts in a blow to hopes for a rebound in global growth.
China’s official purchasing management index (PMI) dipped to 50.1 for April, when speculators had wagered on a steady outcome of 50.5 or even an improvement.
A measure of services also disappointed with a pullback to 54.3.
The Aussie is often used as a liquid proxy for China plays given Australia is a major exporter of resources to the Asian giant.
The currency quickly eased to 70.40 US cents after the PMI release from 70.64.