Investing.com - The Australian dollar is trading higher against its U.S. rival during Tuesday’s following another strong day for U.S. stocks, a sign that risk appetite is alive and well in global financial markets.
In Asian trading Tuesday, AUD/USD is higher by 0.18% at 1.0299. The pair was likely to find support at 1.0193, the low of March 5 and has moved past resistance at 1.0284, the high of the March 8 session.
The Aussie, one of the so-called riskier currencies, for its correlation to commodities prices, has displayed an intimate correlation to U.S. stocks over the past several years. In part, it is rising equity prices in markets outside of Australia that have lifted the Aussie in recent days.
The Aussie is also showing resilience following some slack data points released by China over the weekend. China's industrial production rose 9.9% in February, below expectations for a 10.5% increase also below a 10.3% hike logged during the previous month. Consumer prices in China rose by 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
China is Australia’s largest trading partner.
Earlier today, a report released by National Australia Bank showed Australia’s business confidence index fell to 1 last month from 3 in January. Australia releases home loan data tomorrow and analysts are expecting an increase on that front.
With most of the recent Australian data points showing the world’s 12th-largest economy is on sound footing, traders’ expectations for another interest rate cut from the Reserve Bank of Australia are dwindling. Traders now believe there is less than 20 percent RBA cuts rates when it meets in early April down from odds of 25 percent just last week.
Elsewhere, AUD/JPY added 0.45% to 99.44 while AUD/NZD rose 0.39% to 1.2466. EUR/AUD fell 0.24% to 1.2661.
In Asian trading Tuesday, AUD/USD is higher by 0.18% at 1.0299. The pair was likely to find support at 1.0193, the low of March 5 and has moved past resistance at 1.0284, the high of the March 8 session.
The Aussie, one of the so-called riskier currencies, for its correlation to commodities prices, has displayed an intimate correlation to U.S. stocks over the past several years. In part, it is rising equity prices in markets outside of Australia that have lifted the Aussie in recent days.
The Aussie is also showing resilience following some slack data points released by China over the weekend. China's industrial production rose 9.9% in February, below expectations for a 10.5% increase also below a 10.3% hike logged during the previous month. Consumer prices in China rose by 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
China is Australia’s largest trading partner.
Earlier today, a report released by National Australia Bank showed Australia’s business confidence index fell to 1 last month from 3 in January. Australia releases home loan data tomorrow and analysts are expecting an increase on that front.
With most of the recent Australian data points showing the world’s 12th-largest economy is on sound footing, traders’ expectations for another interest rate cut from the Reserve Bank of Australia are dwindling. Traders now believe there is less than 20 percent RBA cuts rates when it meets in early April down from odds of 25 percent just last week.
Elsewhere, AUD/JPY added 0.45% to 99.44 while AUD/NZD rose 0.39% to 1.2466. EUR/AUD fell 0.24% to 1.2661.