The Australian dollar rose toward a nine-month high after a report showed manufacturing unexpectedly expanded for the time since June in China, the South Pacific nation’s biggest trading partner.
The Aussie extended gains against major peers after data earlier showed Australian manufacturing jumped to the highest since 2004. Supplying raw materials for China’s industrial activity has fueled Australia’s economic growth for more than a decade.
“The market got a little shot in the arm on the stronger prints, but we would interpret with caution,” said Sue Trinh, head of Asian foreign-exchange strategy at Royal Bank of Canada in Hong Kong. “We are bearish on the Aussie at current levels.’