FOREX-Dollar dips, Aussie slides as China factory survey disappoints

Wed Feb 19, 2014 10:30pm EST
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* China February HSBC flash PMI hits seven-month low

* Soft China survey deals blow to Australian dollar

* Dollar slips versus yen as Nikkei retreats

By Shinichi Saoshiro

TOKYO, Feb 20 (Reuters) - The dollar dipped and its Australian counterpart skidded on Thursday after a disappointing China survey rekindled concerns about emerging market economies and buoyed currencies such as the yen.

Activity in China's factories shrank again in February as employment fell at the fastest pace in five years, a preliminary private survey showed on Thursday.

The soft Chinese survey was a blow to the Australian dollar , which shed 0.5 percent to $0.8957, coming down from $0.9012 reached earlier in the session.

The Australian dollar closely tracks economic fortunes of China, Australia's biggest trading partner.

"The PMI survey revived the idea that the Chinese economy is stagnant. Even if the Reserve Bank of Australia refrains from cutting rates, it is not the ideal condition to go long on the Australian dollar," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo.   Continued...