Chinese data boosts dollar

 

Dollar, coins, moneyThe Australian dollar remains above 94 US cents on the back of surprisingly strong Chinese manufacturing figures.

At 0700 AEST on Tuesday, the local currency was trading at 94.22 US cents, down from 94.33 cents on Monday.

The Australian dollar shot up above 94 US cents on Monday, rallying as high as 94.47 cents after the HSBC China manufacturing purchasing managers’ index for June came in at 50.8, up from May’s 49.4 and well above economists’ expectations of 49.7.

It was the first time since November 2013 that the index, which tracks activity in factories and workshops in the world’s second-biggest economy, had come in above 50.

“The news brought buyers into the Australian/US dollar which climbed just shy of 94.50 US cents before profit-taking kicked in,” said BK Asset Management managing director Boris Schlossberg.

“The Aussie now finds itself at the best level since April and within striking distance of the yearly high.

“If the pair can clear the 94.50 US cent barrier it could make a run towards the key 95 cent level.”

AAP

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