Sterling Australian Dollar exchange rates have dropped recently from approximately 1.8250 earlier in May to the 1.79 levels seen during the latter part of last week.
A business outlook survey showed that confidence was a lot higher than expected which is why we saw the Australian Dollar strengthen against Sterling.
In today’s data it was announced that Chinese manufacturing activity has picked up to its fastest rate this year. Any reading above 50 represents growth and the figure came out at 50.8 up from April’s high of 50.4.
The country’s economy grew by 7.4% in the first three months of the year, down from 7.7% growth in the previous quarter but today’s data should be taken positively by investors looking to again move into the Australian Dollar therefore strengthening the currency down under.
China’s government has recently introduced measures to boost growth and this appears to now being reflected in the world’s second largest economy.
As Australia is heavily reliant on what happens with Chinese growth any positive signs could mean more investment in Australia’s mining industry owing to the demand from China and this is likely to strengthen the Australian Dollar over the next couple of days.
The Chinese aimed for 7.5% growth for 2014 and with things looking slightly better this is seen as good news for the Australian economy.
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