European Data Boosts Australian Dollar

Better than expected news from the Eurozone helped the Australian dollar to grow against all other major currencies today despite the pessimism expressed by the RBA yesterday.

The Aussie rose against the greenback to the highest level since mid-May (this year) and extended its gains against the euro. The currency also rose against the Japanese yen and its New Zealand counterpart. The Australian dollar has been falling yesterday on concerns about the European banks’ stress tests and the statements by the Reserve Bank of Australia.

The major moving factor for the AUD were reports on Purchasing Manager Index in manufacturing and services in Eurozone. Both reports demonstrated growth and the higher than expected values. Manufacturing PMI rose from 55.6 to 56.5 and Service PMI rose from 55.5 to 56.0.

AUD/USD rose from 0.8768 to 0.8939 as of 17:28 GMT today after going as high as 0.8951 earlier — the highest level since May 14. AUD/JPY increased from 76.25 to 77.78, while EUR/AUD fell from 1.4540 to 1.4430.

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