Fundamental Comment

China’s upbeat data pushes Aussie towards three-week high

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The Australian dollar rose today against the Federal currency to trade near a three-week high, after yesterday's decline, as it received support from the improvement in Chinese economic data.

The Aussie dollar hit a high of 0.7894 against its U.S. counterpart after recording a three-week high during yesterday's trading at 0.7897, while it opened today’s session at 0.7855.

China’s data showed a significant progress in industrial production and retail sales for February, which has supported the Australian dollar since China is Australia's first trading partner.

China's industrial production Index rose by 7.2% from a previous 6.2% rise, in line with expectations, while the annual retail sales index rose 9.7% from a previous rise of 9.4%.

On the other hand, the index of investments in fixed assets increased by 7.9% from expectations by 7% and the previous reading by 7.2%.

The US dollar fell against the major currencies after weak inflation data released by the US economy yesterday, ahead of US PPI data and retail data for February due later in the day.

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