Manufacturing data released from China early yesterday morning came in above forecast and this data had an impact on a number of currencies. The resulting boost in confidence saw emerging markets perform well, with the Australian dollar and the volatile South African rand particularly healthy. Australia’s export-reliant economy has strong links with China’s manufacturing industry; the world’s second largest economy is the primary destination of commodities being shipped out of Australia.
Climbing oil prices had a negative impact on the Indian rupee, thanks to the country’s significant importing of the fuel. Concerns were raised by traders that these rising prices will widen India’s trade deficit and further spur-on inflation levels.
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