Australian Dollar Opens Lower, Recovers

The Australian dollar opened sharply lower on Monday but has recovered afterward. The currency got a downward pressure from disappointing macroeconomic data in Australia’s biggest trading partner — China. As for macro indicators in Australia itself, they were mostly positive.
The Australian Industry Group Australian Performance of Manufacturing Index rose from 52.1 in November to 55.3 in the holiday period of December-January (there was no separate report for December). A reading above 50.0 indicates an expansion of the industry, and an increase means an accelerating pace of growth. The report commented on the result:

Australian manufacturing suffered severe disruptions in output, sales and activity during Q2 and Q3 of 2020 due to the COVID-19 pandemic but has been in recovery since September. Manufacturing businesses reported stronger and more broad-based recovery over the (normally quiet) summer holiday period. Five of the six manufacturing sectors included in the Australian PMI® reported positive trading conditions (results over 50 points, trend) during December 2020 and January 2021, with the strongest results reported from manufacturers in machinery & equipment and chemicals, pharmaceuticals, cleaning, rubber, petroleum & related products.

The Melbourne Institute Inflation Gauge rose by 0.2% in January, down from 0.5% in December.
The ANZ Australian Job Advertisements rose by 2.3% in January after increasing by 5.3% in the previous month, demonstrating an eighth consecutive monthly increase.
A report from the Reserve Bank of Australia revealed that the Commodity Price Index climbed by 19.7% in January from the same month a year ago. Furthermore, the December increase got a positive revision from 11.7% to 12.7%.
AUD/USD closed at 0.7641 on Friday, opened at 0.7621 on Monday, rallied to 0.7663 intraday but retreated to 0.7618 by 16:06 GMT. EUR/AUD traded at 1.5857 after closing at 1.5881 during the previous session and opening at 1.5893 during today’s session. AUD/JPY was up from 79.82 to 79.96 today following Friday’s close at 80.02.
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Original from: www.earnforex.com