The aussie has also made a nice recovery against the USD today.
The AUD had been pushed down toward the 89.30 level after data from China—one of Australia’s biggest export recipients—had shown that industrial production had fallen to rate of 17.8%. Also pushing the aussie down against the dollar was a strong commitment by the government to keep a cap on spending growth until a surplus of 1% of GDP can be reached with a goal of creating a solid buffer against foreign crisis. While this should provide solid footing for the Australian economy in the years to come, the forex markets today preferred to sell off the currency. As we moved into the US trading day though, spirits seemed to brighten and the US dollar—which had been the recipient of a great deal of safe-haven buying as of late—gave back almost 100 pips to the AUD. As we move through the US banking hours and into the Australian trading day, market participants will want to pay close attention to the home loans data to be released from the Australian Bureau of Statistics.