Aussie Ignores Domestic Fundamentals, Pays Attention to News from China

Fundamental data from Australia was rather negative today, but it did not hinder the Australian dollar’s rally. The currency gained as Chinese imports increased last month, improving prospects for Australian goods.
The Customs General Administration of China reported that the trade surplus decreased $17.8 billion in July from $21.1 billion in June as imports advanced 10.9 percent from a year ago. Imports were down 0.7 percent year-on-year in June.
The positive report from China, the biggest trading partner of Australia, allowed the Aussie (as the Australian currency is nicknamed) to ignore the domestic employment report that was not particularly good. Australian employment fell by 10,200 in July from June. At the same time, the unemployment rate stayed at 5.7 percent, while forecasters have predicted that it would rise to 5.8 percent.
AUD/USD rose from 0.8997 to 0.9085 and EUR/AUD slid from 1.4813 to 1.4700 as of 13:06 GMT today. AUD/JPY advanced from 86.67 to 87.37 and its daily high was at 87.83.

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