AUD Rallies to Two-Month Highs on Weak US Dollar

The Australian Dollar has reached two-month highs against the US Dollar amid the Greenback's weakness. August's soft data has dented expectations of a Federal Reserve rate hike in September.

The poor Chinese numbers, including weaker-than-expected Industrial Production and Retail Sales, would normally be a drag on AUD/USD. However, the pair is leaning heavily on the US Dollar's decline, with the Greenback being broadly weak across the board.

AUD/USD extended its recovery on Monday, pushing to fresh 10-week highs and holding near the 0.7100 zone. The pair is 0.40% up for the day, driven almost entirely by the US Dollar's weakness rather than anything positive out of Australia.