By: Barbara Zigah
The Australian Dollar hit a 13-month high versus the U.S. Dollar as better than expected retail sales data from Australia provided mounting evidence that an interest rate increase could be forthcoming before year end. Speculators believe that, as early as November, the Reserve Bank of Australia will likely move to increase key interest rates. As reported at 2:44 p.m. (JST) in Tokyo, the Australian Dollar rose .8% to trade at $0.8781; earlier in the session, following the release of key data showing that Australian retail sales rose .9% last month, it traded at $0.8805, a new 13-month peak. This past quarter, market players have been investing more heavily in currencies such as the Australian Dollar and its New Zealand counterpart in an attempt to shore up their profits. The Australian Dollar has benefited strongly from the bettering health of the global economies, as evidenced by the 9 rise versus the U.S. Dollar from this quarter to last.
The U.S. Dollar also slipped against other currencies in Asian trading. Against the Japanese Yen, the U.S. Dollar fell to 89.65 Yen, a decline of .4%, and nearing an 8-month low of 88.20 Yen which was struck on Monday. Over the past quarter, the Yen has gained nearly 7% on the U.S. Dollar. The Euro also moved up against the greenback, trading at $1.4620, an increase of .2%; over the past quarter, the Euro has risen 4% versus the U.S. Dollar.
Better than Expected Retail Sales Data props up Australian Dollar
Barbara Zigah