The Aussie strengthened against the greenback on Wednesday, reaching its 2-month maxim, after economic data was published, which shows that China’s economy increased by 6.4 percent year-on-year in the Q1. The figures exceeded market forecasts. China is the main destination for raw materials mined in Sydney.
China’s economic growth has made it clear that the worst for the world economy is over, thus inspiring investors after some lull in FX markets, to turn their attention to the Australian currency, so far the euro and the dollar are trading in a narrow range.
It is also worth noting that the leading Westpac-MI economic index in Australia rose by 0.2 percent in March 2019, after it remained unchanged in the previous month.
The Australian dollar rose by 0.31 percent to $0.7197, while the U.S. dollar weakened against the euro after data from China eased concerns about a slowdown in the global economy.
The dollar index versus six major rivals dropped 0.13 percent to 96.93 at 10.15 GMT.
The euro added 0.25 percent to $1.1311, compensating the previous day loss.
The New Zealand dollar sank by 0.32 percent to $0.6739, but the growth of the Aussie helped it to move away from a 3-1 / 2-month low of $0.6668.
The Kiwi dollar was under pressure as annual inflation in the country slowed down in the first quarter, which increased the interest rate reduction possibility in the coming months.