• Australian Dollar (AUD) rises after Chinese factories post biggest jump in profits in over a year
  • US – China tensions cap gains for the risk sensitive Aussie Dollar
  • US durable goods beat forecasts at 7.3% vs 7.2% expected after US labour market data showed the recovery stalling

The Australian Dollar US Dollar (AUD/USD) exchange rate is extending gains at the start of the new week. The pair rallied 1.5% across last week, settling on Friday at US$0.7104. At 14:20 UTC, AUD/USD trades +0.5% at US$0.7139, just shy of the high of the day.

The Australian Dollar is rising boosted by encouraging data from China overnight. According to the Chinese statistics bureau profits at industrial firms in China soared 11.5% in June. This was the second straight month of gains and the largest jump in profits for over a year adding to evidence that China’s economic recovery is gathering momentum.

The upbeat data comes following record slump in profits across the first 5 months of the year as the coronavirus crisis hit.

The Australian Dollar is considered a proxy for China, meaning it is sensitive to Chinese data.

The Aussie managed to shrug off intensifying US – China tensions after China confirmed that it closed the US consulate in Chengdu over the weekend. The move came following the US closure of the Chinese consulate in Houston last week on spying accusations.

There is no high impacting Australian data due until Wednesday, leaving the Aussie Dollar vulnerable to sentiment and movements in the US Dollar.

The US Dollar has plunged across the European session and the start of the US session on Monday amid rising geopolitical tensions and concerns over the economic recovery in the US.

With coronavirus cases above 4.1 million in America, parts of the worst affected southern states are re-imposing lockdown measures. On Friday data showed that the US labour market recovery was stalling.

Data today has been more upbeat with US durable goods jumping by a better than forecast 7.3%. With mixed messages coming from the data investors will look towards US Federal Reserve policy meeting for further clues on the outlook. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.