Australia’s Dollar Rebounds on Stronger China’s Economy

The Australian dollar rebounded today as the set of good reports was released in China, showing a strong economic growth. The currency previously weakened as the earthquake in Japan diminished demand for 

higher-yielding currencies.

Today’s reports from the National Bureau of Statistics eased the concern that economy of China, Australia’s largest trading partner, may slow. The rate of inflation remained the same at 4.9 percent, while it was expected to decline, and industrial production rose 14.1 percent in February. The producer prices index grew 7.2 percent.

The Australian currency weakened earlier as the tremor off the coast of Japan caused damage in Tokyo. Markets shook off to some degree the worries that were cause by the disaster. We still should see how Japan will cope with the aftermath of the earthquake and how markets will react to the efforts of the government.

AUD/USD jumped from 1.0007 to 1.0150 as of 23:02 GMT today after it fell previously to 0.9968. EUR/AUD dropped from 1.3785 to 1.3696, following the advance to 1.3834. AUD/JPY went up from 83.02 to 83.10. The currency pair slumped earlier as low as 81.94.