Forex - AUD/USD higher after Aussie data points

Published 04/03/2013, 09:58 PM
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Investing.com - The Australian dollar is trading higher against its U.S. rival during Thursday’s Asian session after a couple of surprisingly strong data points boosted the Aussie.

In Asian trading Thursday, AUD/USD is higher by 0.15% at 1.0477. The pair was likely to find support at 1.0418, the low of March 27 and resistance at 1.0482, the high of March 27.

Official data released earlier today showed Australian retail sales rose 1.3% in February following a revised 1.2% gain in January. That easily topped the 0.3% gain economists expected. The February reading of Australian retail sales shows the largest increase since November 2009.

In another report, the Australian Bureau of Statistics said building approvals jumped 3.1% after a 2% drop in January.

The latest Australian Industry Group-Commonwealth Bank index showed an increase of 1.1 points to 49.6 last month. Readings below 50 indicate contraction, but the rate of declines in the index are slowing amid 14 straight months of readings below 50.

Those data points come a day after oficial data showed that Australia's trade deficit narrowed more-than-expected in February, hitting AUD0.18 billion from a deficit of AUD1.22 billion the previous month. Analysts had expected the trade deficit to narrow to AUD1 billion in February.

A separate report showed that new home sales in Australia fell 5.3% in February, after a 4.2% increase the previous month.

Overall, it would appear the Australian economy, the world’s 12th-largest, is on solid ground and that the Reserve Bank of Australia may continue to hold interest rates steady at 3%. That is exactly what RBA following its meeting earlier this week.

Elsewhere, AUD/JPY is up 0.09% at 97.44 while AUD/NZD is higher by 0.15% at 1.2447. EUR/AUD is down 0.17% at 1.2262.


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