AUD/USD up to 0.9370 after China Trade Data

Australia’s dollar rose to a two-week high after reports on local jobs growth and Chinese trade beat analyst expectations, brightening the outlook for the South Pacific nation’s economy.

The euro was near a seven-week high with the European Central Bank forecast to keep its benchmark interest rate unchanged today even as President Mario Draghi stepped up rhetoric against the currency’s gains last month. The euro has been the best performer of the past year in Bloomberg Correlation Weighted Indexes after the pound and Swiss franc. A dollar gauge was steady before Federal Reserve Chair Janet Yellen speaks before a Senate Budget Committee today.

Jobs data have “given more confidence to markets that Australia might actually be in a recovery mode,” said Desmond Chua, a strategist at CMC Markets in Singapore. Trade figures in China, Australia’s largest trading partner, have “definitely helped improve overall sentiment on the Chinese markets, and we’re looking at some form of spillover into the Aussie dollar.”

Bloomberg

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