Australian Dollar Resilient in Face of Negative Fundamentals

The Australian dollar edged higher today even though fundamentals, both domestic and overseas, were not particularly supportive for the currency. The currency has been surprisingly resilient after the unexpected interest rate cut from the Australian central bank.
Today’s data from Australia was disappointing as it showed growth of retail sales at 0.2 percent in December, below analysts’ projections. Coupled with the recent surprise interest rate cut from the Reserve Bank of Australia and the situation in the eurozone, it looked like the fundamentals would drive the Aussie down. Yet the Australian dollar demonstrated resilience, trading above the opening level against its major counterparts.
AUD/USD rose from 0.7749 to 0.7807 and AUD/JPY advanced from 90.89 to 91.67 as of 13:05 GMT today.

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