Australian Dollar Gains as Optimism Strengthens

The Australian dollar advanced today as traders threw out doubts and were ready to take a riskier course. Earlier Forex market participants felt uncertainty caused by the unclear outcome of the EU summit, but it seems they decided to look at the current plans of the European leader in the positive light.
Another positive factor for the Aussie (the usual nickname of the Australian currency) was the expansion of the manufacturing in China. The Asian nation is the major trading partner of Australia and as such has a great impact on the Australian economy. For some time China was showing the troubling signs of a slower economic growth. Today’ report alleviated the worries, at least for now. The HSBC Flash China Manufacturing Purchasing Managers’ Index rose to 51.1 in October from 49.9 in September.
There were some negative fundamentals that may spoil the Aussie’s rally. Australia’s Producer Price Index rose 0.6 percent in the third quarter. That’s slower growth than 0.8 percent in the second quarter and, so far, the slowest pace this year.
AUD/USD traded at about 1.0461 today as of 23:12 GMT after it opened at 1.0331 and reached the daily high of 1.0500. EUR/AUD fell from 1.3390 to 1.3303 following the rise to 1.3431. AUD/JPY advanced from 78.72 to 79.64 today.

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