The Australian Dollar rallied against the Pound and climbed from a three-month low against the US Dollar following the release of better-than-forecast PMI data out of China. The currency also made gains against the Euro.
According to the National Bureau of Statistics and China Federation of Logistics and Purchasing, Novembers PMI report came in at 51.4, matching October’s 18-month high level. The data beat economists’ expectations for a reading of 50.8. Any number above 50 indicates expansion.
“The Aussie has started the week on a firmer footing, which is all to do with the China data. The conditions for something of a reversal are perhaps falling into place. The market is looking for an excuse to buy back the Aussie and tomorrow’s RBA statement may provide that excuse,” said a currency strategist at the National Bank of Australia Ltd.
The ‘Aussie’ also found support from the release of data which showed that approvals to build or renovate houses in the country fell less than expected. According to the Australian Statistics Bureau the number of approvals fell by 1.8%, far short of the expected 5% decline.
The data reassured economists that the record low interest rates in the country were working and eased expectations that the RBA will announce a further cut to rates when it meets for its monthly policy meeting tomorrow. The currency could return to its weakening trend if RBA policy makers make further suggestions that they are considering monetary easing measures to weaken the ‘Aussie’ which in recent weeks they have deemed as ‘overvalued’.
Current Australian Dollar Exchange (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9138
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6730
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5573
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1153
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0942
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4857
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7943
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8966
Correct as of 09:40 am GMT
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