Chinese growth helps Aussie dollar

Published: 2 Sep at 9 AM Tags: Euro, Dollar,

Positive financial data coming from China has helped to push up the Australian dollar. Shares in Asia have also been helped to a two-weak peak. The appetite for short-term risks has been given a boost by a delay in decisive action on Syria. In China, the purchasing managers’ index exceeded expectations to hit its highest point since April.

The geopolitical tensions in the Middle East have helped the safe haven yen as investors expect the US Federal Reserve to ease its bond buying programme later in the month. The yen is down 0.5 per cent against the dollar at 98.62 yen and is also down 0.3 per cent against the euro, which is now worth 130.21 yen.

The positive news about Chinese growth means the Australian dollar has been lifted 0.7 per cent to $0.8966. Gold and oil prices have dropped because of a delay by the US government to announce a military strike against Syria. The possibility of intervention in the region came after a suspected government sanctioned attack on civilians with chemical weapons.

Brent crude has dropped to $113 a barrel. The 1.1 slip in price comes after last week’s high of $117.34 created by fears disruption in supply could be caused by US troops entering Syria.

Safe haven gold has also dropped 0.3 per cent to settle at $1,391 per ounce.