The Australian dollar is surging in Asian trade, propelled higher by stronger-than-expected economic data, big gains in regional stocks and what’s likely to be a raft of short-covering from traders.
After opening the session at .7073, the AUD/USD surged back above the .7100 level following news that Australia’s posted a mammoth trade surplus of over $3 billion in September.
It’s since gone on with the move, climbing to the highest level since October 20.
Huge gains in stocks across most parts of the region is clearly helping, as is positive headlines on Brexit negotiations, something that has helped the British pound and euro push higher.
The Chinese yuan — highly influential on the Aussie dollar this year, especially in Asian trade, is also trading marginally firmer, pulling back from multi-year lows struck earlier in the week.
With short speculative in the Aussie at levels not seen in several years, the squeeze higher is undoubtedly being fuelled by short-covering from traders.
That’s certainly helping the New Zealand dollar which is actually outperforming the Aussie, seemingly benefiting more from the release of Australia’s trade report than its compatriot across the ditch.
Here’s the Aussie dollar scoreboard at 3.20pm in Sydney.
AUD/USD 0.7127 , 0.0054 , 0.76%
AUD/JPY 1.3146 , 0.00 , -0.05%
AUD/CNH 4.9664 , 0.0342 , 0.69%
AUD/EUR 0.6283 , 0.0031 , 0.50%
AUD/GBP 0.5545 , 0.0005 , 0.09%
AUD/NZD 1.0830 , -0.002 , -0.18%
And for regional stocks.
Australia ASX 200 5826.10 , -0.07%
NZ NZX 50 8852.59 , 1.15%
Japan TOPIX 1638.02 , -0.49%
Shanghai Comp 2632.22 , 1.13%
Shenzhen Comp 1320.33 , 2.02%
HK Hang Seng 25439.97 , 1.84%
Sth Korea KOSPI 2040.81 , 0.55%
Sinagpore STI 3053.75 , 1.16%
Taiwan TAIEX 9840.55 , 0.39%
Philippines PSI 7140.29 , 1.77%
Indonesia JKSE 5845.05 , 0.23%
Malaysia KLCI Index 1707.00 , -0.13%
Thailand SET 1670.33 , 0.07%
India Nifty 50 10392.35 , 0.06%
S&P 500 Futures 2719.75 , 0.32%
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