The Australian Dolalr recorded an increase of 0.7 per cent and was trading at $0.9640 in early morning trade today recovering from its losses during the previous month.

The Australian national currency was boosted by reports from China that showed that the manufacturing activity has accelerated in the world’s second largest economy, which is a major trading partner of China. The Australian currency had fallen 7.7 per cent loss in May, which is its steepest fall since September 2011.

According to the latest figures released, China’s manufacturing activity has accelerated during the month of May. The country’s Purchasing Managers’ Index rose to 50.8 during May compared to 50.6 in April, according to the data released by the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A rating of more than 50 shows expansion while a rating of below 50 shows contraction.

The Australian currency began to recover over indications that the Australia's biggest export market may be recording a stable recovery. The currency fell moderately to $0.9620 but managed to stay above the $0.9528 mark. The Australian dollar fell 4.8 per cent against the Japanese yen during the previous month but recorded an increase of 0.2 per cent to 96.76 yen on Monday.