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Greenback is on defensive amid downbeat manufacturing data

On Friday, the evergreen buck was on the back foot having taken a slump following a shocking contraction in American manufacturing, that cast some doubts on the strength of American economic growth ahead of closely-watched employment news later in the day.

The Institute for Supply Management reported that its index of national factory activity descended 3.2% to a reading of 49.4, which is the first contraction since February.

The given outcome turned to be a setback for greenback bulls, who had bet solid American data this week would cement the case for an early rate lift by the Federal Reserve.

Meanwhile, the common currency held firm during Asia trade at $1.1195, maintaining Thursday's 0.35% revenues.

Its next objective is seen around $1.1215, where it boasts its 100-day moving average and also 38.2% retracement of the drop from its Aug 18 high of $1.1366 to Wednesday's three-week minimum of $1.1123.

The greenback edged down to 103.35 yen, having reached 104.00 yen, the highest value for over a month.

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