Forex: Higher than expected Retail Sales see AUDUSD spike

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Australia’s Retail Sales for the month of February came out at 0.5%, slightly better than the expected and previous value of 0.4%. The figure for the Australian Retail sales is obtained through a survey that is given to a variety of retail stores that range in the products they provide and their size. It is considered a strong indicator of the movement of the Australian economy; a higher than expected reading is regarded as a bullish signal for the AUD.

 

The announcement of the news saw a spike in the AUDUSD pair of slightly over 10 pips, pushing the currency pair to a session high of 1.0331, coming within 5 pips of the recent 29 year high that was reached in yesterday’s latter session.

 

The Australian Dollar has remained firm in today’s Asian session at the recently elevated level of 1.0314, some 20+ pips from the recent 29 year high reached in yesterday’s United States session of 1.0336. Anticipation of an interest rate hike for the Euro zone in the past week for the Month of April has left investors optimistic with regards to the global health of the economy and has raised the risk appetite in the market. As such investors have looked to take long positions in high interest yielding currencies such as the AUD, which has in recent days prospered from this.