Australia’s dollar rebounded following its biggest monthly slide since 2011 after Chinese data showed manufacturing accelerated, easing concern a slowdown in Asia’s largest economy will reduce demand for commodities.
The Aussie strengthened against most of its 16 major peers before a policy meeting by the Reserve Bank of Australia tomorrow, when the RBA will probably keep the benchmark rate at a record-low 2.75 percent, economists forecast. Government 10-year bond yields climbed, following a gain in Treasury yields at the end of last week.
China’s manufacturing report published June 1 was “the first seemingly positive bit of economic news that we’d had from China for some time,” said Ray Attrill, the global co-head of currency strategy at National Australia Bank Ltd. in Sydney. “There’s a chance that we can push a little bit higher,” he said, referring to the Aussie.
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