Though the US Dollar remains in high focus for the world’s traders, commodity-linked currencies are also taking center stage. The Australian and New Zealand Dollars got some support from economic news out of China which showed growth in factory output touching a 5-month peak. China’s National Bureau of Statistics reported that Industrial Production grew unexpectedly to 6.2% in November from 5.6% in October; analysts had predicted no change in the rate. Moreover, retail sales also edged higher to 11.2% from 11.0%, against expectations of a rise to 11.1%.
As reported at 10:49 am (GMT) in London, the AUD/USD was trading at $0.7214, a gain of 0.33%; the pair has ranged from $0.7160 to $0.7224 in today’s trading. The NZD/USD was also higher at $0.6735, a gain of 0.25%; the pair’s daily range had $0.6691 at the low end and $0.6737 at the high.
PBOC Activity Could Benefit Antipodean Currencies
Analysts said that the antipodean currencies could also get support from this weekend’s activity at the People’s Bank of China (PBOC). Over the weekend, the PBOC revalued the Yuan’s trading rate to a lower range. They also announced the implementation of a trade-weighted index; analysts took that to mean that the PBOC intends to continue to devalue the Chinese Yuan. The PBOC has been attempting to shore up the Chinese economy through various means, and analysts feel that the PBOC will continue to intervene in the currency in any manner available in order to stimulate growth.