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Forex - Aussie and kiwi move higher after RBA decision, Chinese data

Published 11/01/2016, 03:31 AM
Aussie and kiwi gain ground vs. greenback in late trade
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Investing.com - The Australian and New Zealand dollars moved higher against their U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged and as upbeat Chinese manufacturing activity data boosted market sentiment.

AUD/USD climbed 0.70% to 0.7666, the highest since October 26.

In a widely expected move, the RBA left its benchmark interest rate unchanged at 1.50% on Tuesday.

Commenting on the decision, the central bank said the economy was expected to grow over the next year, as it assesses the impact of past rate cuts in August and May.

NZD/USD rose 0.20% to 0.7165, also the highest since October 26.

Data earlier Tuesday showed that China’s official manufacturing purchasing managers’ index rose to 51.2 in October from 50.4 the previous month.

The Caixin manufacturing PMI also ticked up to 51.2 this month from 50.1 in September.

China is Australia’s biggest export partner and New Zealand’s second biggest export partner.

Meanwhile, investors remained cautious with the greenback amid heightened political uncertainty after the FBI said it would review more emails related to Hillary Clinton's private email use.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 98.37.

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