Australia’s dollar rallied against all 16 major peers after a private report showed China’s manufacturing expanded for the first time in four months, boosting trade prospects.
The currency extended a gain to a third day against its New Zealand counterpart to reach a two-week high. Australia’s 10-year bond yields climbed to the most in more than a year following advances by U.S. Treasury yields after minutes of the Federal Reserve’s July meeting showed policy makers were “broadly comfortable” with a plan to curtail bond purchases.
“China’s manufacturing data was well received, spurring a gain in the Aussie,” said Takuya Kawabata, an analyst at Gaitame.com Research Institute Ltd. in Tokyo. “Having said that, there is still an overhang from the prospect of Fed tapering, so investors are hesitant to chase the Aussie rallies too aggressively.”