Sixth Day of Gains for AUD/USD on Outlook for US & China’s Growth

The Australian dollar rallied today for the sixth straight day versus the euro and for the third against the US dollar and the Japanese yen as the outlook for the US and China’s economies improved, making the investors more willing to risk and increasing demand for the riskier assets.

The report yesterday showed that the applications for the unemployment benefits in the US decreased by 27,000 last week. The US retail sales gained 0.3 percent in August, following the advance by 0.4 percent in July, according to the forecasts. The Chinese government reported today that the imports widened by 35.2 percent in August from a year ago.

The good news boosted the stocks: the Standard & Poor’s 500 Index gained 0.2 percent and the MSCI Asia Pacific Index of regional shares rose 0.1 percent. The gains of the equities and the improving risk appetite allowed the Aussie to rise versus all of 16 major currencies.

AUD/USD closed at 0.9262 after it opened at 0.9228 and went down to the intraday low of 0.9203. EUR/AUD slipped from 1.3747 to 1.3715, following the advance to 1.3799. AUD/JPY rose from 77.31 to 78.00.

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