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Australian dollar rises to fresh high since June 5 versus USD

AUD/USD climbed past 0.7100 as a weaker US dollar more than offset July weakness in China’s retail sales, industrial production, and fixed-asset investment.

Reported · Written up by our desk · Major Pairs

The Australian dollar strengthened sharply versus the US dollar, pushing AUD/USD past 0.7100 to a fresh high since June 5, as follow-through buying continued at the start of the new week.

FXStreet attributed the move largely to sustained USD selling, saying reduced expectations for an immediate US interest rate hike helped pressure the US Dollar Index (DXY) to an over two-month low.

The outlet pointed to weaker China data as a counterweight, noting China’s retail sales rose 0.6% year over year in July versus 1.5% expected, industrial production grew 4.5% versus 5.3% in June, and fixed asset investment fell 6.7% year-to-date.

FXStreet also cited softer US indicators, including a 0.6% month-on-month fall in US retail sales in July and a dip in the University of Michigan consumer sentiment index to 51 in August from 55.2 in the prior month, while noting the Reserve Bank of Australia has maintained a hawkish stance.

Latest closeDollar index 99.64 ▼0.3%

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