The Australian dollar continues to rally despite a rebound in the greenback

Photo by Amory Ross/Team Alvimedica via Getty Images

The Australian dollar continued to grind higher on Wednesday, bucking a rebound in the US dollar against most other major crosses.

Here’s the scoreboard as at 7.50am AEDT.

AUD/USD 0.7841 , 0.0012 , 0.15%
AUD/JPY 88.16 , 0.26 , 0.30%
AUD/CNH 5.0935 , 0.0047 , 0.09%
AUD/EUR 0.6523 , 0.0032 , 0.49%
AUD/GBP 0.5800 , 0.0039 , 0.68%
AUD/NZD 1.1039 , 0.0023 , 0.21%
AUD/CAD 0.9832 , 0.004 , 0.41%

At .7841, the AUD/USD currently sits at the highest level since October 20, largely ignoring the release of strong US economic data during the session.

The US ISM Manufacturing PMI rose to 59.7 in December, the second-highest reading in the past six years. A reading above 50 suggests that activity levels improved from a month earlier with the distance away from this level indicative of the speed of improvement.

Suggesting that activity levels will likely improve in the months ahead, the new orders subindex — a lead indicator — surged to 69.4, the highest level since 2004.

Construction spending also impressed, lifting by 0.8% to $1.257 trillion in November, leaving it at the highest level on record.

While that, along with technicals, helped the greenback recover against most major crosses including the euro, UK pound and yen, it wasn’t enough to derail the rally in the Aussie dollar which continued to push higher on the back of another surge in stocks and firmer iron ore and crude oil prices.

The minutes of the US Federal Reserve’s December FOMC meeting were largely overlooked by traders, briefly seeing the greenback add to earlier session gains before giving back all of those gains in recent trade.

AUD/USD Daily Chart

Looking to the day ahead, there’s a smattering of economic data released both in Australia and abroad for markets to digest.

Locally, the Australian Industry Group will release its Performance of Services Index for December at 9.30am AEDT.

Services PMI readings will also be released in Japan, China and India during the session.

Along with further services PMI reports from the Eurozone, UK and US, other data highlights today include the Nationwide House Price Index and consumer credit figures from the UK along with the ADP National Employment report and initial jobless claims data from the US.

The US EIA will also release weekly crude oil inventory data while James Bullard, St Louis Fed president, is also scheduled to speak.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.