All trading involves risk. Losses can exceed deposits.

Aussie jumps after strong China data

The Australian dollar has been boosted by the positive economic data from china over the past two days.

All trading involves risk. Losses can exceed deposits.

The Australian dollar is trading at $0.9165, up 0.6% on the day, after China’s economy showed signs of stabilising.

On Wednesday, Beijing reported stronger-than-expected trade balance figures, with July imports and exports up 10% and 5% respectively. This encouraged traders to buy the Australian dollar, as China imports a large portion of its minerals from Australia. Strong industrial production figures overnight from China has also helped to remove some of the uncertainty surrounding the state of the Chinese economy.

Following the Reserve Bank of Australia’s 0.25% interest-rate cut to 2.5% this week, a new record low, the Australian dollar jumped as some traders anticipated a larger 0.5% price cut. The statement that followed suggested that the Aussie base rate will remain unchanged for a number of months, with dealers now looking towards November for the next rate cut.

Spot FX AUD/USD (DFB) chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.