The Australian dollar rose to a three-week high after data yesterday showed China’s exports increased more than estimated, adding to signs the world’s second-largest economy is rebounding.
The Aussie gained versus all of its 16 major peers before data this week forecast to show inflation in China slowed while industrial production grew at the fastest pace since December. Tony Abbott led the Liberal-National coalition to victory in federal elections held Sept. 7, ending six years of rule by the Labor Party. Australia’s 10-year bond yields fell from a 17-month high.
“The Aussie lifted mainly because of the Chinese trade balance data,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. (CBA) “If the Chinese data that come out today and tomorrow are better than we think, the Aussie will probably get another leg up.”
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