The Australian dollar edged ahead on Wednesday as investors cheered better-than-expected retail sales data after months of tepid growth, while Brexit concerns lifted the Aussie to its highest against the pound in more than three years. The Australian dollar rose 0.26 percent to $0.7636, but still clocked a 10th straight session trapped in a 76 to 77 US cent band after again failing to break higher on Tuesday.
Australian retail sales grew 0.4 percent in August, double forecasts and a relief after a flat July. The Aussie continued its winning streak elsewhere. It touched a 3-year peak against the pound on growing worries about Britain's impending exit from the European Union. It also held near a one-month high against the yen at 78.51 yen and added 0.5 percent against its New Zealand counterpart, its third straight day of gains.
The New Zealand dollar fell on Wednesday to its lowest level since mid-August, dragged down by a reversal in global dairy prices. The kiwi sank to $0.7184, from as high as $0.7286 before the auction, which was held in the early hours of Wednesday morning. The fortnightly Global Dairy Trade auction showed prices for dairy products, the country's largest goods export earner, dipped 3 percent after rising for four consecutive auctions. New Zealand government bonds eased, sending yields 6 basis points higher at the long end of the curve. Australian government bond futures slipped in line with US Treasuries. The three-year bond contract fell 4 ticks to 98.44, while the 10-year contract dipped 5 ticks to 97.92.
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