Australian dollar rallies as economic data weighs in

Australian Dollar news

The Australian dollar edged out the euro and its US counterpart on Monday session after a series of impressive economic data were released, pushing the currency on the bullish territory.

Robust Figures

The Australian dollar erased its Friday losses and bounced back sharply on the start of the week, as it jumped to 0.7364 against the greenback from 0.7296 last week while notching a 0.3% gain versus the euro.

Investors showed little jitters on the start of Monday trading, pulling off some profit taking in the early sessions, as they growing concerns on Donald Trump’s economic policy loomed before the famous business tycoon and now president-elect takes on the White House.

But the Aussie received an early-week boost from the recent economic figures showed by its local government and the strong consumer price data from its largest trading partner, China.

The country’s record for its construction PMI last month climbed to 47% from 46.6, surpassing economists’ expectations of just 46.8%.

The currency shrugged off some concerns on the news that the country’s most lucrative commodity, the iron ore, began diving, as demand for this risk-correlated currency in the global market was still impressively high.

Meanwhile, economic powerhouse China provided ample support to commodity and Pacific region currencies, especially the Australian dollar, as its consumer an producer prices tallied a 2.1% and 5.5% growth respectively on a year-on-year term, despite a slowed pace of consumer price growth in December.

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