AUD/USD Above 0.7650 as China Manufacturing Grows First Time Since June 2015

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.’

Bloomberg

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.