Aussie Joins Other Asian Currencies in Rally on Monday

The Australian dollar rallied today even as economic data from China, Australia’s biggest trading partner, was lackluster. The Aussie joined other Asian currencies in a rally after the United States avoided government shutdown.

US Congress agreed to spend $1 trillion to avert government shutdown later this week. This should be enough to fund federal agencies, which would be closed otherwise except for most essential ones, till September.

The official China manufacturing PMI fell from 51.8 in March to 51.2 in April. Economists had predicted the index to stay almost unchanged.

Now, traders wait for tomorrow’s policy meeting of the Reserve Bank of Australia. Experts expect no change to the existing monetary policy and predict a neutral statement from the central bank.

AUD/USD rallied from 0.7468 to 0.7504 as of 9:24 GMT today. EUR/AUD dropped from 1.4600 to 1.4519. AUD/JPY climbed from 83.10 to 83.87.

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