Investing.com - The Aussie held gains in Asia on Thursday as China manufacturing figures came in better than expected and lifted regional sentiment.
AUD/USD rose 0.27% to 0.7402 with the currency's fortunes closely linked to commodity trade with China while USD/JPY changed hands at 114.21, down 0.21%.
China reported Thursday that the semi-official CFLP manufacturing index came in at 51.7 for November, compared with a 51.0 level seen, and up from 51.2 the previous month. The CFLP non-manufacturing PMI came in at 54.7, compared to 54.0 last month, subsequent figures from the private Caixin manufacturing PMI rose to 50.9 in November, beating an expected 50.8 level.
The Caixin index has now been above the 50-point neutral level which separates expansion in activity from contraction for five straight months, adding to views that in the world's second-largest economy growth has stabilized thanks to a credit and construction boom.
Earlier in Australia, the AIG manufacturing index jumped to 54.2 in November from 50.9 the previous month. Australia also reported private new capital expenditure dropped 4.0%, more than a 2.5% fall seen for the third quarter.
Japan reported its manufacturing PMI for November at 51.3, up from 51.1.
The U.S. dollar index, which measures the greenback against a basket of currencies, fell 0.17% to 101.46.
Overnight, the dollar rallied against the yen and the euro on Wednesday as data showed incomes and household spending grew at a rapid pace for the second straight month in October, a government report showed, demonstrating that consumers, rather than businesses, are supporting economic growth in the U.S.
Another economics report released today showed that private-sector hiring continued at a quick pace this month, showing the economy is stronger now than earlier this year. Additional reports are due out later this week on employment figures.
The Federal Reserve is poised to take a more strict view on monetary policy next month, and higher interest rates are expected to bolster the dollar, making the currency appealing to investors seeking yield. Additional interest rate increases may be in the offing during the first few months of the new Trump Administration.