The Australian dollar retreated from a 7-1/2-month high on Wednesday as weak economic data at home and abroad cooled optimism for a speedy world economic recovery, hitting demand for riskier currencies. The Aussie pulled back to $0.7712, after jumping offshore to a high of $0.7785, a level last seen on October 3. It was still up however from $0.7664 seen here late Tuesday.
The Aussie had dipped after data showed a key measure of Australian consumer confidence fell in May, hurt by last week's debt-fuelled government budget and by worries about job losses. "There is nothing to boost the currency, especially since the Aussie is a growth and risk currency." The consumer sentiment survey of 1,200 people showed confidence fell 4.3 percent to 88.8 between April and May, the second-biggest fall after the release of a budget in the last 10 years.
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