Strong Chinese and weak US data sends the Australian dollar higher

clothing factory

In short

  1. Strong Chinese manufacturing data helps the Aussie dollar higher
  2. Weaker than expected economic data from the US also sent the US dollar lower
  3. The AUD/USD went above 68 cents but the AUD/NZD fell below 1.05

AUD to USD exchange rates

TimeOpenLowHigh
Today0.6817
In the last week0.67560.6823
In the last month0.67560.6926

The Australian dollar opened up on Tuesday above 68 cents for the first time in a week an a half.

There were 2 main drivers of the move higher. Firstly, manufacturing data out of China was better than expected.

Why should this help the Australian dollar? Well, China is now Australia's largest trading partner - by some way. An improvement in their economy is a good sign that they will need Australian commodities and so the demand for the Australian dollar is likely to increase.

On the other side the Pacific, the news wasn't so good. Factory data out of the US was slight worse than expected. The market looked at this and sold the US dollar, pushing the AUD/USD back above 68 cents.

 

Up Next

It's a busy week both locally and abroad. In Australia, all eyes will be on the RBA interest rate meeting, decision and statement on Tuesday.
Overseas, a series of manufacturing data in China and the US should show what impact the ongoing trade war is having.
 

CountryDayEvent
ChinaMondayCaixin China Manufacturing PMI
USAMondayInstitute for Supply Management (ISM)
AustraliaTuesdayRBA Interest Rate Decision
AustraliaWednesdayGross Domestic Product (GDP)
EurozoneThursdayGross Domestic Product (GDP)
USAFridayNon Farm Payrolls