Australian Dollar Supported By China Manufacturing despite local wakness

MoneyTrading.com.au - Wish you all a Happy & Prosperous New Year

Australian stocks are taking some comfort Monday from continued evidence of the strength of China's economy, beginning 2010 on a positive note despite a weak lead from the U.S. and a contraction in local manufacturing.

Australian manufacturing activity fell slightly in December, snapping a run of four consecutive monthly rises, suggesting a strong Australian dollar, recent interest rate rises and a weak global economy had a weak impact on activity.

The Australian Industry Group/PricewaterhouseCoopers Australian Performance of Manufacturing Index fell 2.7 points in December to 48.5, below the 50-point level that separates contraction from expansion.