The Australian dollar rose today even amid fundamentals that were not supportive for the currency. Australian retail sales unexpectedly dipped, adding to speculations that another interest rate cut is warranted, but that did not bring the Aussie down.
Australia’s retail sales fell 0.1 percent in November from October, when no change was registered. The report frustrated analysts who have expected an increase by 0.3 percent. Many market participants believe that the Reserve Bank of Australia will cut the main rate to 2.75 percent by March. Despite the negative factors, the Australian currency was strong against the US dollar and the Japanese yen.
AUD/USD rose from 1.0501 to 1.0526 and AUD/JPY advanced from 91.40 to 92.31 as of 14:37 GMT today.
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