Westpac senior currency strategist Sean Callow said the Australian dollar had rebounded strongly since the release of poor China manfacturing data yesterday. "What we've seen on a day with no particular news is an extension of the New York rally in the Australian dollar," Mr Callow said. "It is particularly notable that the Australian dollar has been able to leave behind the weak China PMI.
But Mr Callow said the market is mainly positioning itself for Fed Reserve chair Janet Yellen's speech at Jackson Hole Fed symposium. "The market assumes she is not going to threaten to raise rates any time soon. "Everyone seems to have the same opinion so we'll see whether it works out but that seems to be the way the market wants to trade.
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