With the Australian markets closed for the ANZAC holiday the AUD is forecast to experience light trading today.
The Pound made further gains against the Australian Dollar adding to its run of rises throughout the week as the UK currency found support from positive economic data.
According to the Office for National Statistics, UK retail sales rose unexpectedly in March adding to the evidence that the economy grew strongly in the first quarter of the year. Sales which included fuel increased by 0.1%, defying economist predictions for a decline of 0.4%.
Compared to the same time last year retail sales increased by 4.2%. The strong figure for 2014 was being hailed as the result of a mild winter as March 2013 was the second coldest on record.
The positive data added to yesterdays report released by the Confederation of British Industry which said that its retail sales index increased to 30 in April, up from the 13 recorded in the previous month.
Putting some pressure onto the ‘Aussie’ is the weakened demand for perceived riskier assets. Tensions between Russia and Ukraine have increased over the past few days and the prospect of the West imposing harsher sanctions upon Russia has caused some to worry that such a move could harm the global economy.
Russian troops began military exercises along the Ukrainian border yesterday raising fears that an invasion of eastern Ukraine could occur.
The Australian Dollar is expected to retreat from its recent highs over the coming weeks as inflation data released mid-week dampened investor expectations for the nation’s Central Bank to raise interest rates.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.9272 ,
Australian Dollar,,Pound Sterling,0.5519 ,
Australian Dollar,,Euro,0.6699 ,
Australian Dollar,,New Zealand Dollar,1.0811 ,
US Dollar,, Australian Dollar ,1.0788 ,
Pound Sterling,, Australian Dollar ,1.8133 ,
Euro,, Australian Dollar ,1.4921 ,
New Zealand Dollar,, Australian Dollar ,0.9248 ,
[/table]
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