AUD/USD rallies on Australian GDP data

The Australian dollar was a notable mover during the Asian session as the currency surged against the US dollar after data showed Australian GDP expanded at the fastest pace in almost two years last quarter. AUD/USD jumped above $0.7230 after the data.

Meanwhile, the US dollar held onto gains made against the yen made yesterday after being boosted by encouraging US manufacturing activity data. The rise in the ISM manufacturing PMI index in February rekindled expectations that the Federal Reserve could raise interest rates this year.

The data helped US equity markets rally and make their biggest one-day rise in a month and close at their highest since early January.

The dollar index, which gauges the USD against a basket of six major currencies, rose higher to 98.377. It was up slightly from the previous day and not far from a one- month high of 98.570 touched after the US data.

USD/JPY rallied to a nearly two-week high of 114.18 after being lifted by the US data and last traded at113.86 early in Asia after profit taking.

EUR/USD slipped about 0.1 percent to $1.0860 to move towards a one-month low of $1.0834 touched on Tuesday. The euro is under pressure ahead of the European Central Bank meeting on March 10, when it is expected that the CB will take action and probably cut rates further into negative territory.

GBP/USD traded below the key $1.40 level as the British pound is being weighed down by fears of Brexit.

The post AUD/USD rallies on Australian GDP data appeared first on FXTM Blog.

Source:: AUD/USD rallies on Australian GDP data

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