The Australian dollar rose against the Japanese yen for the first time after fourth straight sessions of decline as growth of China’s manufacturing increased the appeal of the Aussie. At the same time, the currency slumped against the US dollar and the euro.
Growth of China’s manufacturing was positive for commodities and the Standard & Poorâs GSCI Index of raw materials advanced 0.3 percent. All commodity currencies profited from that, but especially the Australian one as China is the biggest trading partner of Australia.
Good macroeconomic reports from Europe also bolstered the Aussie against the yen. Yet by the same token they allowed the euro to outperform Australia’s currency.
The Australian dollar remained vulnerable as domestic fundamentals are not particularly supportive for the currency. That causes concern among investors about potential interest rate cut.
AUD/USD declined from 1.0547 to 1.0450 and EUR/AUD climbed from 1.2616 to 1.2795 (the highest settlement since October) as of 23:14 GMT today. AUD/JPY advanced from 93.45 to 94.46.
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