The Australian dollar demonstrated an amazing performance this week, rising against other most-traded currencies. The Aussie currency together with the New Zealand dollar were the best-performing currencies among majors this month.
The Australian dollar started the week on a strong footing even though data from China was poor. The comments of Australia’s central bank chief helped the currency to maintain the upward momentum, supporting the outlook for a period of stable interest rates. Even news from China turned positive by the end of the week as China’s Premier Li Keqiang signaled about possible stimulus in the Asian country, which is the biggest trading partner of Australia.
The Aussie was very strong against the euro, which had been hurt by talks about negative interest rates. Against the yen, the Australian dollar was rising for seven straight sessions and even positive economic data from Japan had not been able to support the Japanese currency.
AUD/USD jumped from 0.9100 to 0.9248 and AUD/JPY rallied from 92.95 to 95.07, the highest weekly close since June. EUR/AUD sank from 1.5156 to 1.4869.
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