Aussie Gains on Inflation Expectations, Dismisses Data from China

The Australian dollar dipped against its US counterpart and the Japanese yen at the start of today’s trading session but jumped after the gauge of inflation expectations rose.
Melbourne Institute reported that the expected inflation rate rose to 4.1 percent in November from 3.4 percent in October. The data allowed the Aussie to reverse the earlier losses and rally. The currency kept gains even after China’s industrial production disappointed market participants, growing at the 7.7 percent rate in October — below the median forecast of 8.0 percent.
AUD/USD rose from 0.8716 to 0.8750 as of 10:30 GMT today after falling to 0.8671 before. AUD/JPY advanced from 100.67 to 101.08, trading near the highest level since May 2013.

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