Investing.com - The Australian and New Zealand dollars gained ground against their U.S. counterpart on Wednesday, after the release of upbeat Australian economic growth data and mixed manufacturing activity reports from China.
AUD/USD gained 0.54% to 0.7273, the highest since May 18.
The Australian Bureau of Statistics reported on Wednesday that the county’s gross domestic product rose by 1.1% in the first quarter, beating expectations for a 0.8% gain.
Australia’s economy grew by 0.7% in the last quarter of 2015, whose figure was revised from a previously estimated growth rate of 0.6%.
Year-on-year, GDP increased by 3.1% in the first quarter, compared to expectations for a 2.8% rise.
NZD/USD rose 0.31% to trade at 0.6786, the highest since May 23.
Earlier Wednesday, data showed that China’s official manufacturing purchasing manager’s index remained unchanged at 50.1 in May, compared to expectations for a downtick to 50.0.
However, China’s Caixin manufacturing PMI slipped to 49.2 in May from 49.4 the previous month, compared to expectations for a downtick to 49.3.
Meanwhile, the dollar remained broadly supported after Federal Reserve Chair Janet Yellen said on Friday that it would be appropriate for the central bank to raise rates “gradually and cautiously” in the coming months if the economy and the labor market continue to pick up as expected.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.75, still close to Monday’s two-month peak of 95.96.