BS:Australian dollar rallies on China inflation spike
AAP, with a staff reporter
The Australian dollar rallied at the close after stronger-than-expected inflation data out of China.
At 1700 AEST on Tuesday, the local unit was trading at 91.83 US cents, up from 90.58 cents on Monday.
During trade on Tuesday, the Australian dollar dropped after the release of the National Australia Bank monthly business survey.
The survey showed that business conditions had slumped to their lowest level in four years.
OzForex chief currency strategist Jim Vrondas said Chinese consumer price index (CPI) figures released at the same time helped the local currency to make a sharp recovery,
The data showed China's annual inflation accelerated to 2.7 per cent in June, ahead of market expectations of 2.5 per cent.
"The inflation data out of China triggered a move back up for the Aussie dollar," Mr Vrondas said.
He said the market would look ahead to the Westpac/Melbourne Institute consumer sentiment survey on Wednesday, followed by the release of labour force data on Thursday.
