Australian Dollar Soars as Strong Data Reaffirms RBA's Guidance
- Retail Sales increase 1.2 m/m in January vs. 0.7% in December (Revised)
- Australian Trade Balance Surplus Widens to 1433M in January vs. 591M (Revised)
- Australian Dollar Jumps Past US 90 cents Reaffirms RBA’s Guidance
The AUD/USD soared after Australia reported that Retail Sales in January came in at 1.2 percent (month on month), exceeding forecasts of 0.4 percent, and 0.7 percent in December. Moreover, January’s Trade Balance surplus widened to 1,433 million, beating forecasts of 100 million, and improving upon a reading 591 million in December.
The Aussie jumped 52 pips from 0.8979 to 0.9032, advancing well past the psychological level of US 90 cents when the data crossed the wires. This positive data may tip the scales for the market's forecast for the next RBA move to be a hike rather than a cut. For a high-yield currency like the Aussie, that is a key - if distant - benefit.
AUD/USD (5 Min Chart) - Created By Daniel Giardina using Marketscope 2.0
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