The Australian dollar went above 95 US cents overnight after strong manufacturing figures from China and yesterday’s Reserve Bank decision to leave interest rates on hold.
News Corp reports that the dollar went as high as 95.6 US cents overnight, following the RBA leaving interest rates at 2.5 per cent for the 11th month straight.
Managing director of BK Asset Management Kathy Lien told News Corp that dovish language from the RBA yesterday in their announcement was “first and foremost.”
“We also had strong Chinese manufacturing numbers and US stocks hitting record highs,” she said.
Yesterday both the Chinese official and HSBC PMI showed the manufacturing sector in growth, with the official PMI recording the best result in six months.
The resurgent dollar was cited by the Australian Industry Group in its Australian PMI figures for June, released yesterday. The dollar’s strength remained a difficulty for Australian manufacturers as the local sector recorded a contraction last month.