The Australian dollar has received a small boost after Chinese manufacturing figures came in better than expected.

The local currency fell as low as 88.53 US cents overnight, its lowest point since February 4, but got a boost on Tuesday following the surprisingly strong HSBC figures.

At 1200 AEST on Tuesday, the local currency was trading at 88.94 US cents, down from 89.15 cents on Monday.

The figures showed Chinese manufacturing picked up to 50.5 in September, up from 50.2 in August, beating economists’ expectations for a further fall in the data.

TD Securities head of Asia-Pacific research Annette Beacher said the Australian dollar along with iron ore prices tumbled overnight after the Chinese finance minister ruled out further stimulus.

“We were surprised at the outsized reaction to yesterday’s non-stimulus talk as the economy remains on track to achieve the government’s target of 7.5 per cent growth this year,” Ms Beacher said.

Ms Beacher said the surprise recovery in the Chinese manufacturing figures could see Asia-Pacific stocks recover, further boosting the Australian dollar.

Meanwhile, Australian bond futures prices were higher.

The December 2014 10-year bond futures contract was trading at 96.375 (implying a yield of 3.625 per cent), up from 96.310 (3.690 per cent) on Monday.

The December 2014 three-year bond futures contract was at 97.170 (2.830 per cent), up from 97.110 (2.890 per cent).