The Australian Dollar has rallied against the Pound following the release of Chinese data which showed that manufacturing in the world’s second largest economy hit a 16-month high.
The ‘Aussie’ also found support from fading concern over an imminent military strike against Syria and local data showed a rise in building approvals.
According to the HSBC/Markit Purchasing Managers Index (PMI) for China climbed to 50.1 in August, a sharp improvement from the 47.7 reading recorded in July, marking the first expansion in four months.
The latest building approvals data showed an increase of 10.8% in July, over twice as high as the forecasted rate. Economists had been expecting a rise of 4.0%. The figure smashed June’s reading of -6.3%.
The lessening risk of a possible military strike by the USA and its allies against Syria also supported the ‘Aussie’ and has improved risk sentiment in the markets. The delay in an assault has helped most currencies recover from last week’s heavy losses.
“Because Obama said at the weekend he would wait for a Congressional vote we’ve seen money come back to risk currencies like the ‘Aussie’ Dollar and it’s gone up this morning. The market has realised there is not going to be a strike for at least a week, until after the G20 summit and the Aussie Dollar has benefitted from that. I personally think that until there is a strike, the US Dollar is going to find some strength with the Aussie being a benefactor” said Andrew Barnett director at LTG GoldRock
Any gains achieved today are expected to be limited as investors speculate that the Reserve Bank of Australia will reiterate a desire to cut interest rates again in Tuesday’s policy meeting. Such a move would send rates below the current record low level of 2.5%.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8978 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6794 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5772 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4718 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7323 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8699 <
Correct as of 09:40 am GMT