Positive economic data out of Australia’s major trading partner, China, boosted the Australian dollar over the past-24 hours.
Strong gains in international equities and commodities last night also provided a boost as the risk on trade came back in vogue.
The overnight move saw the AUDUSD trade up to a high of US$1.05 but during today’s local session the pair has peeled back a touch to be holding around the US$1.0450 handle.
The New Zealand dollar rallied strongly against the US dollar overnight as fears of a hard-landing for China eased.
The momentum could not be maintained however, with this morning’s inflation data increasing the likelihood that the Reserve Bank of New Zealand will keep interest rates at record lows.
The greenback dropped against all of its major counterparts overnight as better-than-expected corporate earnings and surge in commodities reduced demand for US dollar refuge.
The Great British pound reached an overnight high of US$1.6000, whilst the euro rallied to a six-week high of 1.3950 against the US dollar.
Finally, the Japanese yen rallied to a record high against its US counterpart as Japan’s exports rose in September.