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6 Mar 2014
AUD/USD hits one-month high as risk appetite supports rally
FXStreet (London) - AUD/USD has climbed to a one-month high, with stronger-than-expected trade balance and retail sales figures being supported by a pickup in risk appetite.
A report from the Australian Bureau of Statistics showed that Australia posted a AUD1.4bn trade surplus in January, its widest in two-and-a-half years.
The data represents a 142 percent gain on December's AUD591m print and beat expectations of a decline To AUD100m.
The trade surplus gain was the third monthly increase on the trot, with gains driven by a 4 percent rise in exports while imports increased just 1 percent.
Increased consumer spending
In addition to the positive trade balance news, the ABS also announced that retail sales climbed 1.2 per cent from December, compared with 0.4 percent consensus expectations.
December sales growth was upwardly revised to 0.7 percent from 0.5 percent.
The boost in retail sales has been seen as sign that the Reserve Bank of Australia's record-low rates are boosting consumer spending, cutting any bets that the RBA will move to cut further.
Returning risk appetite
The momentum from the overnight data has been supported by returning risk appetite following a cooling of tensions in the Ukraine. Buyers have returned to riskier assets after a big sell-off following Russia's incursion into the Crimean peninsula over the weekend.
AUD/USD is currently trading at USD0.9083, up 1.09 percent on the session.
A report from the Australian Bureau of Statistics showed that Australia posted a AUD1.4bn trade surplus in January, its widest in two-and-a-half years.
The data represents a 142 percent gain on December's AUD591m print and beat expectations of a decline To AUD100m.
The trade surplus gain was the third monthly increase on the trot, with gains driven by a 4 percent rise in exports while imports increased just 1 percent.
Increased consumer spending
In addition to the positive trade balance news, the ABS also announced that retail sales climbed 1.2 per cent from December, compared with 0.4 percent consensus expectations.
December sales growth was upwardly revised to 0.7 percent from 0.5 percent.
The boost in retail sales has been seen as sign that the Reserve Bank of Australia's record-low rates are boosting consumer spending, cutting any bets that the RBA will move to cut further.
Returning risk appetite
The momentum from the overnight data has been supported by returning risk appetite following a cooling of tensions in the Ukraine. Buyers have returned to riskier assets after a big sell-off following Russia's incursion into the Crimean peninsula over the weekend.
AUD/USD is currently trading at USD0.9083, up 1.09 percent on the session.