The inventory surprise also proved a counterweight to weaker-than-expected gross company profits, released as part of the same ABS business indicator series. "The dollar was a little choppy either side of US93. 30¢ on the release of the local data," Westpac said in a note, "torn between the large headline fall in company profits and the stronger inventories data. "Overall the Aussie seems resilient, also brushing aside slightly sub-consensus China manufacturing [data]," Westpac said.
Manufacturers surveyed for the Australian Industry Group‘s (AiG) latest Performance of Manufacturing Index also cited the strong local currency as a factor in what was a weak August. "While exports lifted in August, many respondents expressed ongoing concern about the persistent strength of the Australian dollar, which is maintaining the intensity of import competition," AiG chief executive Innes Willox said.
Read more here: SMH