Aussie dollar up on RBA comments and Chinese data

The Australian dollar remains lower but began to climb after positive comments by the governor of the central bank on the Australian economy and better than anticipated economic data from China.

At close of trading on Tuesday, the Aussie was trading at 102.89 USD, down from Monday’s figure of 103.12. On Tuesday as a whole, the currency traded between 102.52 and 103.10.

HSBC’s purchasing managers’ index (PMI) revealed on Tuesday afternoon that China’s manufacturing activity shrunk at its slowest pace for five months in July, increasing hopes that economic stimulus measures which have been introduced recently are starting to take effect.

Anthony Botros, a currency dealer at Easy Forex, said that the Aussie was also on the up after Glen Stevens, the governor of the Reserve bank of Australia, made a positive speech on the country’s economy. He explained that it was bolstered by the governor’s comments that the interest rates policy was the right thing for the time being. He went on to say that the remarks added to speculation that the Bank would keep them on hold next month.

At 1700 AEST on Tuesday, the Australian dollar was trading at 80.41 Japanese yen, climbing from close of trade on Monday at 80.45 yen. Against the euro it was at 84.96, falling from 85.21.