Positive Market Sentiment Allows Aussie to Ignore Economic Data

The Australian dollar rallied today despite lackluster macroeconomic data. The currency got support from the positive market sentiment that ignored the latest developments in the US-China trade war.
The six month annualized growth rate in the Westpac–Melbourne Institute Leading Index fell from 0.5% in July to -0.02% in August. Yet the Aussie rallied as the markets continued to ignore the escalation of US-China trade tensions. In addition, the traders’ mood improved further after Chinese Premier Li Keqiang said that China will not devalue the yuan to help its exporters.
AUD/USD rallied from 0.7213 to 0.7243 as of 7:56 GMT today. EUR/AUD declined from 1.6160 to 1.6153, touching the low of 1.6090 intraday.

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