$A falls on weaker Chinese data
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The Australia dollar fell to a fresh six-month low following the release of weaker Chinese manufacturing data but regained some ground later in the day.
At 1700 AEST on Friday, the local currency was trading at 97.02 US cents, down from 97.21 cents on Thursday.
It was at 76.13 Japanese yen, down from 76.61 yen, and at 78.48 Euro cents, up from 78.44 euro cents.
CMC Markets foreign exchange dealer Tim Waterer said the Australian dollar fell to a six-month low of 96.49 US cents following the release of official Chinese manufacturing data.
The Chinese purchasing manager's index (PMI) for May fell to 50.4 points, from 53.3 in April.
A reading below 50 points indicates a fall in manufacturing activity.
"The Chinese PMI data added fuel to the fire when it comes to global growth concerns and the Australian dollar was among the hardest hit assets when that came out," Mr Waterer said.
He said the local currency moved back towards 97 US cents later in the day as traders began to bet on fresh Chinese government efforts to stimulate the world's second-largest economy, in the wake of the PMI data.
"That's mainly as a result of traders trying to turn a negative into a positive."
Mr Waterer said US non-farm payroll data for May to be released on Friday night would drive the currency's movements over the weekend.
Meanwhile, the Chinese manufacturing data had helped push Australian bond future prices to fresh record highs.
RBC Capital fixed income strategist Michael Turner said the bond market remained relatively quiet during Friday's session following a big week of rallies where prices regularly rose to new all-time highs.
"It's been a bit quieter today, relative to the rest of the week," he said.
At 1630 AEST on Friday, the June 10-year bond futures contract was trading at 97.210 (implying a yield of 2.790 per cent), after reaching an all-time high of 97.225 (2.775 per cent) in intraday trade, up from 97.135 (2.865 per cent) on Thursday.
The June three-year bond futures contract was at 97.940 (2.060 per cent), after reaching a record high of 97.970 (2.060 per cent,) up from 97.860 (2.140 per cent) on Thursday.
The Reserve Bank of Australia's Trade Weighted Index was at 73.3, down from 73.6 on Thursday.