The Australian Dollar is trading higher against the Pound after it received support from a number of positive domestic economic data reports and better-than-expected data out of China.
The Australian Industry Group (AiG) manufacturing Index rose to 53.2 in September, the highest level recorded since 2010. New orders, exports, production and employment all increased. A similar Index out of China also boosted the strength of the ‘Aussie’ after it beat economist forecasts.
According to figures the Official manufacturing Purchasing Managers Index for China climbed to an 18-month high of 51.4. The data was far better than the 51.1 in September. A figure above 50 indicates expansion, a figure below indicates contraction.
“The Chinese data today does help to alleviate concern around rising money-market rates and, along with better Australian and Korean PMI numbers, should give the Australian Dollar support. There’s every chance that the ‘Aussie’ does find its feet and firms again,” said Gregg Gibs, senior currency strategist at Royal Bank of Scotland.
Housing data also supported the currency. Residential property prices in the countries eight capital cities rose by 1.3% in October. The Data-Rismark Hedonic Home Value Index climbed at its fastest pace in three years.
“Expect the Australian dollar to be buffeted in the short term between signs Australian interest rates have bottomed and stable growth in China but periodic talk of Fed tapering,” said Shane Oliver, chief economist at AMP Capital.
Disappointing manufacturing data out of the UK softened the Pound further. Markit’s UK manufacturing PMI fell to 56.0 in October from the previous month’s figure of 56.3. Analysts had been expecting a fall 56.1.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9464
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6997
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5917
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1459
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4291
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6900
Correct as of 10:25 am GMT
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