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Aussie Climbs on Domestic GDP Growth, Manufacturing Gains in U.S., China
Australia’s dollar rose by the most in almost three months versus the U.S. dollar after reports showed the nation’s economy grew at the fastest pace in three years last quarter and U.S. and Chinese manufacturing expanded.
The currency, called the Aussie, gained against the U.S. dollar and yen for the first time in three days as gross domestic product expanded for a sixth-straight quarter, rising more than economists estimated. The New Zealand dollar advanced as global stocks rallied, encouraging demand for growth- sensitive currencies. The two South Pacific currencies outperformed all of their major counterparts.
“The momentum for Aussie growth remains positive,” said Mitul Kotecha, Hong Kong-based global head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank. “The Aussie has been more resilient than some other risk currencies recently. The data being released today are helping it.”
Australia’s dollar rose 2.1 percent to 90.93 U.S. cents at 12:10 p.m. in New York, from 89.06 cents yesterday. It gained as much as 2.2 percent, the biggest intraday rise since June 10. The Aussie appreciated 2.4 percent to 76.81 yen, from 74.99 yen.
The New Zealand dollar advanced 1.9 percent to 71.19 U.S. cents. The currency, nicknamed the kiwi, climbed 2.2 percent to 60.19 yen after touching 58.43 yen yesterday, the weakest level since July 2009.
The Aussie rose to a four-month high against the New Zealand dollar as Australia’s economy grew 1.2 percent in the second quarter after rising a revised 0.7 percent in the previous period, the Bureau of Statistics reported today. That beat the median estimate in a Bloomberg survey of 23 economists for a 0.9 percent gain.
The Australian dollar touched NZ$1.2832, the strongest level since April 30, before trading at NZ$1.2760.
China, U.S.
China’s Purchasing Managers’ Index rose to 51.7 in August from 51.2 in July, the Federation of Logistics and Purchasing said today. A reading above 50 shows an expansion. China is Australia’s largest trading partner and New Zealand’s second- biggest export market.
The Institute for Supply Management’s factory index, a gauge of U.S. manufacturing, unexpectedly increased to 56.3 last month from 55.5 in July, the Tempe, Arizona-based group said today. Economists in a Bloomberg News survey forecast the measure declined to a reading of 52.8.
To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Catarina Saraiva in New York at asaraiva5@bloomberg.net
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