The Australian dollar reversed early-session losses against the world's reserve currency on Tuesday, benefiting from one of its top trade partners releasing stronger-than-projected economic data, Bloomberg reports.
The Aussie also was propelled higher by market sentiment noting inclinations as of late against it were overdone. The Aussie slipped 0.6 percent against the U.S. dollar early during the Tuesday trade session and had touched its three-year trough earlier this month against the U.S. dollar.
"The higher China inflation suggests less likelihood the People's Bank of China will provide monetary policy support," currency strategist Joseph Capurso with Commonwealth Bank of Australia in Sydney told the publication on Tuesday. "The market has marked down demand for Australian exports to China, and pushed down the Aussie."
Losses for the Australian dollar against its cross-Pacific rival during the past three months have climbed as high as 9.4 percent, and the Aussie has distinguished itself as the worst-performing of 10 developing nation currencies that Bloomberg follows.
Annual inflation in China advanced 2.7 percent last month, pushing ahead of the forecast for 2.5 percent, according to The Business Spectator.
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