Forex - AUD/USD trims losses after weak retail sales data

Published 12/02/2010, 05:45 AM
AUD/USD
-
EUR/AUD
-
Investing.com – The Australian dollar trimmed losses against its U.S. counterpart on Thursday, pulling back from the daily low hit after official data showed that Australian retail sales fell unexpectedly in October.

AUD/USD clawed up from 0.9626, the daily low, to hit 0.9683 during European morning trade, shedding 0.02%.

The pair was likely to find support at 0.9535, Wednesday’s low and a 10-week low and resistance at 0.9816, the high of November 26.

Retail sales fell by a seasonally adjusted 1.1% in October from September, with discretionary spending on cafes, restaurants and clothing hit hard, according to the Australian Bureau of Statistics. It was the largest monthly fall in retail sales since July 2009. Economists expected a rise of 0.4%.

The weak retail sales report followed Wednesday's news that the economy grew at its slowest pace in two years in the third quarter and further damped speculation of a near-term interest rate rise by the Reserve Bank of Australia.

Meanwhile, a seperate report showed that Australia posted a larger-than-expected trade surplus of AUD2.63 billion in October, compared with an expected surplus of AUD2.0 billion. Imports fell 3% over the month and exports rose 1%.

The Aussie was also down against the euro, with EUR/AUD rising 0.49% to hit 1.3633.

Later in the day, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.