China PMI Helps Commodity Currencies

Commodity currencies were the star performers early in Asia on Monday in what would otherwise have been a featureless start to a heavy week of central bank policy meetings.

Investors bought both the Australian and New Zealand dollars after a survey on Sunday showed China’s factory growth held at an 18-month high in November, an outcome that was slightly ahead of expectations. Both Australia and New Zealand are highly leveraged to China’s economic cycle.

The Aussie rose 0.2 percent to $0.9118, while the kiwi advanced 0.5 percent to $0.8162. Both Antipodean currencies also gained ground on the yen, rising to 93.41 and 83.66.


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