The Australian dollar is flying in Asia with stronger-than-expected data from China, short covering and thin market conditions due to holidays in China and Hong Kong propelling the currency higher.
As at 12.30pm the AUD/USD buys .7045, up 0.4% from Thursday’s opening level.
The pair is currently trading above .7040, a level it was thwarted at on several occasions in recent trading sessions.
“A lot of supply coming into the pair into 0.7040, with reports from investment banks of a good level of stops above 0.7050,” said IG Markets’ chief market strategist Chris Weston.
Weston suggests that short covering may also be contributing to the move higher, noting that leveraged investors remain heavily short the Aussie.
The full Aussie dollar scoreboard is found below.
- AUD/USD 0.7045 , 0.0028 , 0.40%
- AUD/JPY 84.69 , 0.60 , 0.71%
- AUD/CNY 4.4777 , 0.018 , 0.40%
- AUD/EUR 0.6311 , 0.0033 , 0.53%
- AUD/GBP 0.4655 , 0.0018 , 0.39%
- AUD/NZD 1.0982 , 0.0013 , 0.12%