Range Bound Aussie

[SYDNEY] The Australian dollar held its own on Thursday, despite the greenback hitting a seven-week high elsewhere, as optimism over global growth underpinned equities and commodity prices.

The Australian dollar stood at US$0.7658, down a slight 0.2 per cent.

It traded in a US$0.7605/0.7731 range for all of February, ending the month 0.9 per cent higher even as the US dollar index climbed 1.6 per cent in the period.

The Aussie also took in its stride domestic data showing a smaller-than-expected trade surplus of A$1.3 billion in January.

More important were Wednesday’s figures showing the economy turned around in the fourth quarter to extend its 25 years of uninterrupted expansion.

Surveys also showed China’s factory activity expanded at a fast pace in February, likely underpinning demand from Australia’s No 1 trading partner.

“Strong data with the higher-than-expected GDP, along with buoyant China PMI data has lent support to the AUD,” said Stephen Innes, senior trader at Oanda.

“Certainly, the AUD should remain firm on the crosses, which are still a favoured way for dealers to express their bullish Australia bias,” Mr Innes added.

BUSINESS TIMES SG via REUTERS

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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