The resilience of the euro and the Australian dollar has stumped analysts, with one saying that currency markets are now living in an alternative world.
The Australian dollar, also known as the Aussie, rose to $0.9158 on Tuesday, its highest level this year. It is closely tied to the health of China's economy and the fact that the rally has come amid signs of weakness in China, Australia's biggest trading partner, has taken analysts by surprise.
(Read more: Aussie dollar resilience: Here today, gone tomorrow?)
Meanwhile, the euro has also proved resilient in the face of weak manufacturing activity data from China and a dip in European factory activity data on Monday. It gained more than 1 percent against the dollar on Monday and was trading at around $1.3829 on Tuesday.
"We're living in one those alternate worlds at the moment here in foreign exchange land," Robert Rennie, global head of FX strategy at Westpac bank, told CNBC.