Weekly Gains of Australian Dollar on Rapid Chinese Growth

The Australian dollar rose for the sixth consecutive week against its US counterpart as the rapid growth in the Asian region boosted the demand for the higher-yielding currencies and after the bets on the rates hike increased.

The Chinese government reported that the purchasing managers’ index advanced to 53.8 this month from 51.7 in August. The value above 50 indicates growth. China is Australia’s biggest export market. The strong growth in Asia, particularly China and India, should bolster the Australian currency in the near future. The investors raised from 52 percent to 64 percent their bets that the Reserve Bank of Australia would raise the 4.50 percent target lending rate next week.

The Aussie closed above the opening level also versus the New Zealand and Canadian dollars, despite it fell sharply in the second half of the week. Against the Japanese yen the Aussie moved sideways and remained slightly above the opening level. The euro was very strong this week and outperformed the Australian dollar.

AUD/USD opened at 0.9604 and closed at 0.9728 this week, reaching the highest level since July 2008. AUD/NZD closed at 1.3064 after opening at 1.3040 and jumping as high as 1.3175, the highest level since April 7th. AUD/CAD rose from 0.9835 to 0.9926, following the advance to the weekly high of 1.0022.

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

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *