The Australian dollar rallied against its major peers during the first trading session of September even though macroeconomic data (both domestic and overseas) was not particularly supportive for the currency.
Data from China, Australia’s main trading partner, was mixed. The official report showed that Chinese manufacturing returned to growth in August. Yet the private data revealed that the manufacturing sector stalled as the Caixin Purchasing Managers’ Index retreated to the neutral level of 50.0.
As for reports from Australia itself, they were rather poor. Retail sales showed no change in July even though experts had promised growth by 0.3%. Seasonally adjusted private capital expenditure fell 5.4% in the June quarter of 2016 from the March quarter, more than analysts had predicted.
AUD/USD rose from 0.7516 to 0.7530 as of 10:07 GMT today, touching the high of 0.7547 intraday. AUD/JPY advanced from the open of 77.73 to 77.97, bouncing from the daily low of 77.47 and trading near the highest level since August 12. EUR/AUD was down from 1.4837 to 1.4793.
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