China Continues to Help Australian Dollar

The Australian dollar gained today on hopes that China, the biggest Australian trading partner, will stimulate its economy. The Aussie rallied against the US dollar and demonstrated small gains against other major currencies.

The Australian currency rose together with the New Zealand one as Chinese policy makers demonstrated willingness to reignite the slowing economic growth. The commodity-related Aussie gained even though the market of raw materials did not fare well for the most part during Monday’s trading. It looks like risk aversion, caused by the last week’s announcement from the European Central Bank, has gone, and risky Forex traders are willing to buy riskier currencies.

AUD/USD rose from 0.7209 to 0.7255 as of 15:27 GMT today. EUR/AUD went down from 1.5260 to 1.5221.

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