Aussie on a roll post China GDP

[REUTERS SYDNEY] The Australian dollar rose again on Friday to hit a near 2-1/2-month high after data showed China’s economy expanded at a faster-than-expected pace in the fourth quarter of 2016.

China is Australia’s No 1 trading partner while the Aussie is often seen as a liquid proxy for the yuan.

The Australian dollar was last up 0.2 per cent at US$0.7577 after briefly climbing to US$0.7589, a level not seen since Nov 11.

The Aussie is up about 1 per cent this week and was on track to clock its fourth straight weekly gain. It is up 5.3 per cent in January so far, making it one of the best performing major currencies in the world. “I have been fielding more questions about the Aussie’s resilience over the past 24 hours than any other currency,” said Stephen Innes, senior currency trader at OANDA Australia and Asia Pacific.

“Australia (is) an oasis in this politically contentious global environment. In addition to the political stability, yields remain attractive.” Data from China showed the world’s second-largest economy expanded 6.8 per cent in the fourth quarter, compared with expectations of 6.7 per cent, helped by higher government spending.


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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