Australian Dollar Attractive After Strong Retail Sales (FXA)
The possibility of an RBA rate hike may come back into the picture after today’s stronger than expected retail sales data and narrower than expected trade deficit.
Retail sales rose at the fastest pace in 8 months or 1.4% m/m vs. 0.3% expected, while the trade deficit narrowed to AUD 1.7 billion vs. AUD 1.8 billion expected generating talk the deficit may begin narrowing as global growth boosts exports.
The data follows Tuesday’s stronger than expected building approvals and suggests that the rising borrowing costs and withdrawal of the government stimulus has not yet dampened the consumer or the housing market.
The AUD/USD and the Australia Dollar Currency Trust (NYSE: FXA) will break out above technical resistance if it is able to close above a trend line that .9197.
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Posted-In: Forex