Investing.com - The Australian dollar traded higher against its U.S. rival during Tuesday’s Asian session following a better-than-expected retail sales report from down under.
In Asian trading Tuesday, AUD/USD rose 0.11% to 0.9334. The pair was likely to find support at 0.9224, the low of September 13 and resistance at 0.9402, the high of September 26.
Earlier Tuesday, the Australian Bureau of Statistics said that Australian retail sales rose 0.4% last month following a 0.1% increase in the prior month. Analysts expected retail sales to rise 0.3% last month.
The Aussie was also supported after the China Logistics Information Center said that Chinese manufacturing PMI rose to 51.1 last month from 51 in August. Analysts expected an increase to 51.5. Readings above 50 indicate expansion.
Those data points arrived a day after data showed that the HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile. Economists had expected an unchanged reading. China is Australia's biggest export partner.
Tuesday’s data provided an important albeit modest boost to the Aussie as traders appeared to back away from riskier currencies due to a volatile budget debate in the U.S. Markets appear to be pricing in a U.S. government shutdown.
On Monday, President Barack Obama said a shutdown is preventable and said House Republicans are purposefully manufacturing the shutdown for political gain.
Over the weekend, the House approved legislation that stripped Obamacare, the President’s landmark health care reform package, of key provisions. However, the Democrat-controlled Senate has vowed to not accept any budget package that waters down Obamacare.
Elsewhere, AUD/JPY advanced 0.14% to 91.74 after several mixed Japanese data points. AUD/NZD rose 0.10% to 1.1238.
In Asian trading Tuesday, AUD/USD rose 0.11% to 0.9334. The pair was likely to find support at 0.9224, the low of September 13 and resistance at 0.9402, the high of September 26.
Earlier Tuesday, the Australian Bureau of Statistics said that Australian retail sales rose 0.4% last month following a 0.1% increase in the prior month. Analysts expected retail sales to rise 0.3% last month.
The Aussie was also supported after the China Logistics Information Center said that Chinese manufacturing PMI rose to 51.1 last month from 51 in August. Analysts expected an increase to 51.5. Readings above 50 indicate expansion.
Those data points arrived a day after data showed that the HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile. Economists had expected an unchanged reading. China is Australia's biggest export partner.
Tuesday’s data provided an important albeit modest boost to the Aussie as traders appeared to back away from riskier currencies due to a volatile budget debate in the U.S. Markets appear to be pricing in a U.S. government shutdown.
On Monday, President Barack Obama said a shutdown is preventable and said House Republicans are purposefully manufacturing the shutdown for political gain.
Over the weekend, the House approved legislation that stripped Obamacare, the President’s landmark health care reform package, of key provisions. However, the Democrat-controlled Senate has vowed to not accept any budget package that waters down Obamacare.
Elsewhere, AUD/JPY advanced 0.14% to 91.74 after several mixed Japanese data points. AUD/NZD rose 0.10% to 1.1238.