Greenback sits below two-month peak
On Wednesday, the evergreen buck sat below its two-month peak against other key currencies, following a mixed bag of American economic data, tempering expectations of an approaching Fed rate lift.
The Australian dollar surged after the country's first-quarter economic growth exceeded forecasts, thus helping traders to scale back hopes for the RBA to lower interest rates in the nearer future.
Aussie soared to $0.7300, drifting away from a 2-1/2 month minimum of $0.7145 hit last week. Last it was worth $0.7276, showing a 0.6% rise.
Some financial experts point out that revenues in the Australian dollar might be limited in the near-term notwithstanding the strong GDP number. From their point of view the job market is still fragile. As follows from this, domestic demand is going to remain quite weak. Moreover, they expect Aussie to hit resistance at $0.7350 ahead American jobs data on Friday.
By the way, key currencies demonstrated rather a limited reaction to China’s recent surveys of manufacturing as well as services sector activity.