AUD Surges on Weak US Dollar Amid Soft Economic Data

The Australian Dollar has reached two-month highs against its US counterpart as the Greenback weakens in response to soft economic data. The AUD/USD pair is trading near the 0.7100 zone, with a 0.40% increase for the day.

This strength comes despite disappointing Chinese releases over the weekend, which would normally be expected to weigh on the Aussie's value. Industrial Production and Retail Sales numbers both slowed from June and missed expectations, indicating slowing domestic activity in China.

However, the weak US Dollar is having a more significant impact on currency markets than these numbers. Soft data on employment, inflation, and retail sales has reduced expectations of an interest rate hike at the Federal Reserve's September meeting.