The Australian dollar has continued its strength today on the back of strong commodity prices and positive data out of China.
At 5.48am (GMT) the Aussie dollar was trading at US77.01c up 0.21 percent from yesterday’s trade.
Oil continued its climb today after hopes of an agreement this week by at least 16 nations in Doha on Sunday that they will agree to keep output at January levels even if Iran refrains from participating.
Also helping the Australian dollar was strong numbers out of China with exports jumping 11.5 percent against analysts’ expectations of a 2.5 percent rise with imports falling -7.5 percent against predictions of a -10.2 percent fall.
The trade balance figures were released slightly below consensus at $29.86 billion against estimates for a number of $30.85 billion.
The rise in commodities may be behind the positive Chinese data according to Chester Liaw, a senior economist at Forecast Pte Ltd in Singapore.
“The fact that imports were not as bad as expected is actually a good sign for commodity exporters like Australia and New Zealand,” he said
. “China data have reflected stronger and steadier demand for commodities over the past one or two months.” He added.
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