The Aussie dollar fell this morning after the Reserve Bank of New Zealand Governor warned the Kiwi’s strength was unjustified. Traders were betting that Glenn Stevens felt the same way.
But data just released in China gives some credence to recent Aussie dollar strength and helps explain why traders keep buying the Aussie every time it falls.
The HSBC “flash” Chinese PMI printed 52 for July (hence why its flash, the month hasn’t ended) up from 50.7 in June and above the 51 the market expected.
This takes the index to an 18-month high.
Good news for the Aussie which at 0.9467 sees the bulls firmly with the upper hand.
How long till it is trading above 95 cents?