Although the ‘Aussie’ softened last week as the benefits of a weaker domestic currency were advocated and the odds of the Reserve Bank of Australia issuing an additional rate cut increased, the South Pacific asset was supported overnight by some encouraging Chinese data.
The Australian Dollar exchange rate was trading in the region of 0.5875 against the British Pound as of 10:00 am GMT
As China is Australia’s main trading partner the news that the Asian nation’s manufacturing sector expanded by 51.2 instead of the 50.9 expected saw the ‘Aussie’ advance on peers like the Pound and US Dollar.
The result was a six-month high for China and, according to the report, added ‘further evidence to China’s ongoing growth rebound.’
The following statement was issued with the figures; ‘The firmer footing was supported by simultaneous improvements of external and domestic demand conditions. We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a high of 0.5901
While the Australian Dollar snapped a two-day decline against its US counterpart in the wake of the data’s publication, the New Zealand Dollar continued to feel the pressure of ongoing speculation regarding the likelihood of the Federal Reserve tapering stimulus in October.
The AUD/GBP pairing’s advance was aided by a lack of UK data, although this week’s British GDP report could see the Pound recoup losses against its Australian rival. The UK growth data is expected to confirm that the nation’s economy expanded by 0.7 per cent in the second quarter of the year, over double the rate of growth recorded in the first.
Speaking of the ‘Aussie’s recent strength, foreign-exchange analyst Divya Devesh asserted; ‘Data from China has been increasingly more positive. We think this rally could continue for a few more weeks if not months.’
Australian data is a little thin on the ground this week, but global developments are likely to trigger ‘Aussie’ movement in the days ahead.
Current Exchange Australian Dollar (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9426 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6972 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5875 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1257 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0609 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4337 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7027 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8871 <
Correct as of 10:00 am GMT