The Australian Dollar made a second day of gains to push beyond the key level of 90 cents against the US Dollar and pushed higher against the majority of its major peers.
The ‘Aussie’ advanced after data showed that the South Pacific nation’s trade surplus increased more-than-expected in January. According to the Australian statistics bureau, the trade surplus widened to a 2 ½ year high and retail sales soared three times faster than economists forecast. The surplus widened by A$1.43 billion, a far bigger surplus than economists had expected.
Exports rose by 4% on a month by month basis, whilst imports fell by 1%.
Also boosting the currency was a separate report on retail sales which surged by 1.2% in the first month of the year. The figure was the biggest rise in 11-months and a far bigger rise than the 0.4% increase expected by economists. Increased spending at department stores and restaurants was the major cause, The highest increase in spending was seen in New South Wales.
“The Australian economy is a good story. 2014 is off to a strong note. Hopefully this will filter quickly into business and consumer sentiment, and we can start fixing that last weaker patch in the economy, which is investment,” said the head of Asia-Pacific research at TD Securities Inc.
The Australian Dollar’s recent return to strength is sure to see the Reserve Bank of Australia return to trying to talk down the currency. The first opportunity for the Central Bank to try and weaken the currency might emerge tomorrow when RBA governor Glenn Stevens appears before parliament’s committee on economics.
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,0.9022 ,
Australian Dollar,,Euro,0.6577 ,
Australian Dollar,,Pound Sterling,0.5401 ,
Australian Dollar,,New Zealand Dollar,1.0695 ,
[/table]
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