The Australian dollar drove to its top value in one week against the world's reserve currency as speculation mounted that its poor performance recently has been overdone, Bloomberg reports.
The Aussie rose after its poor performance was linked with concerns about the slower pace of trade and commerce with a top trade partner, China. On Wednesday of last week, the monetary unit dropped to its lowest rate in about three years.
"While everyone does accept that China is slowing, there still seems to be shock value when China data disappoints," Asia-Pacific research head Annette Beacher with TD Securities in Singapore told the news source on Wednesday. "Aussie pretty much fell out of bed."
The past three months have seen the Aussie lose about 9.5 percent of its value against the U.S. dollar, distinguishing itself as the worst-performing of developed-nation monetary units that Bloomberg tracks. But the Aussie's surge on Wednesday pushed as high as 0.3 percent.
The Australian dollar was pinched by China releasing data indicating its monthly trade surplus fell by 14 percent in June, according to The Business Spectator. Exports and imports dropped, which the nation did not anticipate.
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