By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The Australian dollar climbed against the greenback on Thursday, after signs of a pick up in global manufacturing and the release of surprisingly strong monthly trade data.
The Australian dollar AUDUSD +0.19% reached a high of $1.0757 in Asian trading hours, a level not seen since early September.
The currency, which tends to be sensitive to economic growth expectations, started Thursday’s Asian session on a strong note after the release of robust manufacturing surveys from the U.K., Europe and the U.S., as well as Chinese data that, though lackluster, surprised to the upside.
Subsequent data out Thursday showed that Australia’s trade surplus grew to a stronger-than-expected 1.7 billion Australian dollars ($1.8 billion), from A$1.3 billion recorded in November
Exports rose 2% in the month, while imports rose 1% on a seasonally-adjusted basis, according to the Australian Bureau of Statistics. See report on Australian trade data.
The Australian dollar “was boosted a little on the decent trade-surplus print,” said Annette Beacher, strategist at TD Securities.
Credit Agricole strategists also cited negotiations between Greece and its private sector creditors, which “looked very close to an agreement by yesterday night.”
The euro EURUSD +0.09% traded at $1.3172, up from $1.3159 in late North American trading on Wednesday, while the British pound GBPUSD +0.06% traded at $1.5842, rising from $1.5834 in late Wednesday trading.
The ICE dollar index DXY -0.05% , which measures the performance of the U.S. unit against a basket of six other currencies, eased to 78.868, down from 78.925 in late North American trading on Wednesday,.
Still, the Credit Agricole strategists pointed out that dollar weakness may not extend much further, with key U.S. jobs data due out on Friday.
“This ‘bonhomie’ may not last long, given that strong U.S. data will always pull the U.S. dollar higher, as it removes the chances of quantitative easing 3,” the Credit Agricole strategists said.
The Japanese yen USDJPY -0.09% — like the dollar, regarded as a safe-haven currency — also rose, with the dollar buying ¥76.13 on Thursday, down from ¥76.25 in late trading Wednesday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
