Australian Dollar Continues Rising After Upbeat Economic Data From China

The Australian dollar is making headway on the back of some upbeat economic data out of China over the weekend.

In addition to being bolstered by gains in the global equity markets, AUD is also making headway after Chinese authorities reported that industrial production unexpectedly accelerated to a 13.9% annual growth rate in August despite calls for a slowdown to a 13.0% growth rate from 13.4% the month prior.

Retail sales, meanwhile, advanced to an 18.4% annual growth rate further than calls for a increase to 18.0% from 17.9% the month prior.

The inflation data were in line, with annual CPI rising to a 3.5% inflation rate from 3.3% in July.

Given the Australian economy’s reliance on strong growth from China, the aussie dollar capitalized on the news.

There had also been some speculation over the weekend that the People’s Bank of China would tighten monetary policy in a bid to slow economic growth, but in the end, the central bank remained silent, giving the risk seekers more reason to buy the Australian currency.

As North American traders come to their desks, AUD/USD is at its best levels since April 21, and gearing up to test the 0.9389 high from April 12, a breach of which will mean its best levels since November 2009.

There is support at 0.9234, 0.9205 and 0.9163.