The Australian dollar held above the 70 US cent mark on Monday, but slipped below the day's high after retail sales data failed to live up to expectations, giving no reason for a surprise interest rate hike this week.
The Aussie was pushed higher offshore on Friday after the advance reading for US second-quarter gross domestic product came in below forecasts, weakening the US dollar.
The USD remained on the defensive in Asia as US security remained on 'high' alert after a warning that al Qaeda might attack key buildings, including the New York Stock Exchange.
The AUD was $0.7017/24 compared with $0.6984/89 later here on Friday. The Aussie touched a three-day high of around $0.7063 offshore.
Australian retail sales jumped 2.1 percent in June, although the market had been looking for an even stronger 4.0 percent surge taking into account new government family benefits released in June. "A 2.1 percent rise is still a very solid result. The downside "surprise" in June will probably be counterbalanced by an upside surprise in the July data," said Michael Blythe, chief economist at Commonwealth Bank of Australia.
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