Aussie Ignores Negative Domestic Data with Help from China’s Reports

General Sir John Monash on Australian 100-dollar billThe Australian dollar rallied today despite unfavorable domestic macroeconomic data. A possible reason for the rally was economic data released in China, which was rather good.

The Westpac Melbourne Institute Index of Consumer Sentiment fell 1.8% in June in May. Meanwhile, the National Bureau of Statistics of China reported that industrial production expanded 6.5% in May from the previous year, the same as in the preceding month and slightly above the median forecast of 6.4%. Other reports released in China were also decent. China is the major destination for Australia’s goods, thus news from the Asian country has a big impact on the Australian currency.

AUD/USD rallied from 0.7536 to 0.7578 as of 11:12 GMT today. EUR/AUD dropped from 1.4869 to 1.4781.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Loading Facebook Comments ...

Leave a Reply