The Australian dollar rallied today after diving intraday. The currency managed to stage a bounce after China’s economic data surprised economists pleasantly.
The National Bureau of Statistics of China reported that the Consumer Price Index rose 2.3% in November from a year ago, a bit more than analysts had predicted (2.2%). The Producer Price Index was up 3.3% whereas the median forecast was also at 2.2%. Australia, being the trading partner of China, benefits from better performance of China’s economy, therefore good news from the Asian nation helps the Australian currency.
AUD/USD rose from 0.7463 to 0.7485 as of 12:08 GMT today after dipping to 0.7441 intraday. AUD/JPY rallied from 85.09 to 85.97, trading at the highest level since April 27.
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