Aussie Dollar Touches Two-Week High After China Reports

Aussie Dollar Touches Two-Week High After China Reports

Australia’s dollar touched the strongest level in two weeks after Chinese data showed signs of economic stabilization, brightening the export outlook for the South Pacific nation.
Australian government bonds dropped for a third day after reports showed China’s economy grew in line with economists’ forecasts in the third quarter while industrial production, retail sales and fixed-asset investment increased more than expected in September. The Australian and New Zealand currencies gained versus the yen as Asian stocks advanced, boosting demand for riskier assets.
“The data flow from China was slightly better than expectations,” said Khoon Goh, a senior currency strategist in Singapore at Australia & New Zealand Banking Group Ltd. (ANZ) “We might see perhaps a little bit more upside in the Aussie as concerns around a China slowdown start to ease off a little.”
The Australian currency reached $1.0397, the strongest since Oct. 1, before trading at $1.0385 at 4:40 p.m. in Sydney, little changed from yesterday’s close. It added 0.3 percent to 82.16 yen. New Zealand’s dollar, nicknamed the kiwi, bought 82.12 U.S. cents from 82.19, and climbed 0.2 percent to 65 yen.
The MSCI Asia Pacific Index of shares rose 0.8 percent.
Australian 10-year bond yields climbed 11 basis points, or 0.11 percentage point, to 3.23 percent. The rate earlier touched 3.24 percent, the most since Sept. 24.