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Forex - AUD/USD dips after touching 29-year high

Published 03/31/2011, 03:56 AM
AUD/USD
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AUD/JPY
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Investing.com – The Australian dollar dipped lower against its U.S. counterpart on Thursday, after hitting a 29-year peak boosted by a better-than-expected domestic retail sales report for February.

AUD/USD retreated from 1.0347, the pair’s all-time high, to hit 1.0328 during late Asian trade, dipping 0.03%.

The pair was likely to find support at 1.0232, Monday’s low and resistance at 1.0347, the day’s high.

Earlier in the day, the Australian Bureau of Statistics said retail sales rose 0.5% to a seasonally adjusted AUD20.53 billion in February, outstripping expectations for a 0.4% increase. Household goods retailing rose 2%, while sales of clothing and footwear rose 0.9% last month.

A separate report showed that building approvals in February fell sharply, with the total number of houses and apartments approved for construction down a seasonally adjusted 7.4%. Analysts had expected a rise of 3.0%.

Also Thursday, the Reserve Bank of Australia said credit growth grew 0.5% in February from the previous month, adding to views that the pace of lending in the economy is now much stronger than it had been in 2010.

The Aussie was also slightly lower against the yen, with AUD/JPY easing down 0.05% to hit 85.55.

Later in the day, the U.S. was to publish a government report on initial jobless claims.

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