The Australian dollar has hit a three month high after stronger than expected Chinese data boosted confidence about the world’s second largest economy.
At 0700 AEST on Wednesday, the local unit was trading at 93.12 US cents – its highest level since June 18 – up from 92.50 cents on Tuesday.
Official data released on Tuesday showed China’s industrial production rose 10.4 per cent in the 12 months to August, the fastest increase since March 2012.
Retail sales, a key indicator of consumer spending, also beat expectations, rising 13.4 per cent in August compared with the same month last year.
BK Asset Management MD, Boris Schlossberg, said the strong Chinese data, as well as easing concerns about a possible strike on Syria, were helping the Aussie dollar to outperform.
“Overall, the data from China showed that the country’s economy continues to expand at a healthy rate, despite widespread concerns that it would slow markedly in the second half of this year,” Schlossberg said.
“The news bodes well for global growth in general and for Australia in particular as it suggests that Chinese demand for Australian resources is likely to remain high for the foreseeable future.
“The Aussie could make a sprint towards 95 US cents as short covering kicks in, especially if the long anticipated slowdown in China never materialises.”
AAP
