AUD: Supported by the strong GDP numbers - BBH

The US dollar is stronger against all the major currencies but the Australian dollar notes analysts at BBH.  

Key Quotes

“News that Australia's economy expanded 1.1% in Q4 16, among the strongest quarterly performances in the past five years, lent support to the Aussie, which continues to encounters offers around $0.7700.  It found bids near $0.7640, which need to be absorbed before it can test the lower end of recent range near $0.7600.”

“The story behind Australia's recovery after the contraction in Q3 was a dramatic (9.1%) improvement in the terms of trade, due to the rise in iron ore and coal prices.  This in turn seems to be a function of the stabilization of the Chinese economy.  News earlier today showed Chinese manufacturing PMI rising to 51.6 in February from 51.3 in January.  Output, new orders and business expectations improved.  The non-manufacturing PMI slipped to 54.2 from 54.6.”