The Australian dollar rose against most of its major peers even though data from Australia’s main trading partner, China, was a bit disappointing.
China’s trade surplus increased from $28.47 billion in September to $38.2 billion in October. While it was not a bad reading by itself, the actual value was below the median forecast of $39.5 billion. But on an annual basis, the growth of imports was outpacing the growth of exports. That is not a bad sign for the Australian economy, though, promising more demand for Australia’s goods and commodities.
Yet some analysts argued that the strength of the Aussie was not due factors specific to the currency, but due to the weakness of the US dollar. Indeed, the greenback suffered from prospects of tax cuts being delayed for a year.
Today’s rally allowed the Australian dollar to trim yesterday’s losses versus some currencies and erase them outright against others. The Aussie fell yesterday as markets perceived the policy statement of the Reserve Bank of Australia to be relatively dovish.
AUD/USD rose from 0.7643 to 0.7679 as of 14:19 GMT today. EUR/AUD dropped from 1.5151 to 1.5094. AUD/CHF rallied from 0.7638 to 0.7679.
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