Australian Dollar Advances to Six-Week High on China’s Economy

Australia’s dollar advanced to a six-week high before reports forecast to show industrial production and retail sales increased in China, the South Pacific nation’s largest export market.

The Citigroup Economic Surprise Index for China, which shows if the country’s data beat or missed expectations, touched a five-month high yesterday. Australian government bonds fell, with the 10-year yield rising toward the most in 17 months. New Zealand’s dollar held a two-day gain after card-spending increased more than economists estimated.

“I do expect the Chinese data to be relatively solid,” said Derek Mumford, a director at Rochford Capital, a foreign-exchange risk-management company in Sydney. “The Aussie bounce has been relatively strong.” The Australian dollar may rise to 94 U.S. cents in a few days, he said.

Australia’s dollar rose 0.1 percent to 92.39 U.S. cents at 11:03 a.m. in Sydney from yesterday, after it touched 92.45, the highest since July 29. The currency gained 0.3 percent to 92.16 yen, after earlier reaching 92.19, the strongest since July 24. It fetched NZ$1.1522 from NZ$1.1509.

New Zealand’s dollar bought 80.20 U.S. cents from 80.18 yesterday, when it reached 80.34, the strongest since Aug. 20. The kiwi dollar advanced 0.2 percent to 79.98 yen.

The yield on Australia’s benchmark 10-year bond climbed five basis points, or 0.05 percentage point, to 4.12 percent from yesterday. It touched 4.16 percent on Sept. 6, the highest since April 2012.

China’s Economy

In China, industrial production probably increased 9.9 percent in August from a year earlier, the fastest annual rate since December, according to the median estimate of economists surveyed by Bloomberg News before the data today. Economists in a separate Bloomberg poll forecast retail sales grew 13.3 percent in a year through August, up from 13.2 percent in July.

National Australia Bank Ltd. will release its gauges of Australian business conditions and confidence for August today.

In New Zealand, the value of transactions on electronic cards rose 0.8 percent last month from July, when it gained a revised 0.5 percent, the statistics bureau said today in Wellington. That compared with a 0.6 percent growth estimated by economists surveyed by Bloomberg.

The Reserve Bank of New Zealand sets policy on Sept. 12. The nation’s two-year swap rate, a fixed payment made to receive a floating rate, was little changed at 3.47 percent.

-- Editors: Naoto Hosoda, Ken McCallum

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