The Aussie dollar and its New Zealand counterpart traded higher today on the back of the rise in stocks and stronger Chinese data.
The Aussie dollar has bounced back amid the US Federal Reserve’s caution and growing signs China’s economy is stabilising.
At 0700 AEST on Thursday, the local unit was trading at 75.98 US cents, up from 75.65 cents on Wednesday.
The Aussie dollar rose to 76.19 US cents in overnight trade.
BK Asset Management director of FX strategy Kathy Lien says the US dollar fell after the release of minutes from the US central bank’s March policy meeting showed caution about raising rates.
‘To the dismay of dollar bulls, the March minutes failed to rescue the dollar, causing the greenback to end the day lower against all of the major currencies,’ she said in a note.
Mr Lien said that, in addition, the local currency had also gained on data showing China’s manufacturing and service sectors were expanding.
‘The Australian and New Zealand dollars traded higher today on the back of the rise in stocks and stronger Chinese data,’ she said.
‘Between the manufacturing and service sector report, there are growing signs of stabilisation in China’s economy.’
The only minor risk event for the currency on Thursday is the release of Australia’s performance of construction index for March.
At 7am on Thursday, 07 April one Aussie dollar was buying:
75.98 US cents, from 75.65 cents on Wednesday*
83.43 Japanese yen, from 83.53 yen
66.66 euro cents, from 66.62 euro cents
111.29 New Zealand cents, from 111.06 NZ cents
53.81 British pence, from 53.51 pence
*Currency closes taken at 1700 AEST previous local session
AAP
