The Australian dollar strengthened against other major currencies in the Asian session on Wednesday, as investors await details on U.S. President Donald Trump's promised tax cuts, infrastructure spending plans, and repeal of Obamacare as Trump kicked off his first address to the U.S. Congress.
U.S. President Trump had offered few policy details on his economic plan but said he was open to a broad immigration reform bill that could be passed if both Republicans and Democrats in Congress were willing to compromise.
The currency rose earlier after Australia's GDP data rose more-than-expected on quarter in the fourth quarter of 2016.
Data from the Australian Bureau of Statistics showed that Australia's gross domestic product climbed a seasonally adjusted 1.1 percent on quarter in the fourth quarter of 2016. That exceeded forecasts for an increase of 0.8 percent following the 0.5 percent contraction in the third quarter.
In other economic news, the latest survey from the Australian Industry Group showed that the manufacturing sector in Australia continued to expand in February, and at a sharply faster pace. That marks a large jump from 51.2 in January. It also marks the highest index reading since May 2002.
Meanwhile, the currency showed muted reaction to the China data.
Data from IHS Markit showed that the Caixin factory Purchasing Managers' Index of China improved unexpectedly to 51.7 in February from 51.0 in January. The reading was forecast to drop to 50.8. A score above 50 indicates expansion in the sector.
The official manufacturing PMI climbed to 51.6 from 51.3 a month ago, the National Bureau of Statistics revealed. The score was also above the expected level of 51.2. Meanwhile, the non-manufacturing PMI dropped to 54.2 from 54.6.
Tuesday, the aussie showed mixed trading against its major rivals. While the aussie rose against the Canadian and the New Zealand dollars, it fell against the U.S. dollar and the euro. Meanwhile, the aussie held steady against the yen.
In the Asian trading, the Australian dollar rose to 2-day highs of 0.7699 against the U.S. dollar and 1.3749 against the euro, from an early more than 2-week low of 0.7637 and a 9-day low of 1.3837, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.78 against the greenback and 1.35 against the euro.
Against the Canadian dollar, the yen and the NZ dollar, the aussie advanced to a 3-1/2-month high of 1.0229, a 5-day high of 86.97 and a 1-week high of 1.0731 from yesterday's closing quotes of 1.0179, 86.33 and 1.0645, respectively. The aussie may test resistance around 1.03 against the loonie, 88.00 against the yen, and 1.08 against the kiwi.
Looking ahead, manufacturing PMI reports from major European economies for February, German unemployment rate for February and U.S. mortgage approvals for January are slated for release later in the day.
In the New York session, German flash CPI data for February and U.S. personal income and spending data for January, Markit's U.S. and Canada PMI reports for February, U.S. construction spending for January and crude oil inventories data are set to be published.
The Bank of Canada will announce its interest rate decision at 10:30 am ET. Economists expect the bank to retain interest rates unchanged at 0.50 percent.
At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan is expected to speak at Paul Quinn College, in Dallas.
At 2:00 pm ET, U.S. Federal Reserve releases Beige book report.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.