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Aussie rises as China stimulus prospect grows
Australia's dollar has hit a new high for this year. The rise is caused by a combination of an improving Australian economy and growing speculation that China will add more stimulus to its slowing economy. Data out this week showed further signs of a Chinese slowdown, notably in the country's factories.
Ken Veksler, director of Accumen Management, says the the Australian dollar is to a large degree ignoring the latest data out of China, and adds markets are not in panic mode over a Chinese slowdown "because on the flip-side, this means there is an increased likelihood of additional stimulus being pumped into the government".
Chinese authorities are providing stimulus to their country's economy to ensure the economic slowdown there isn't too serious. A lower Yuan is encouraging outflows of money from China - and Australia seems to be one of the preferred destinations for the renminbi.
01:41 minutes
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