It seems that the Australian dollar can never fall to far. After resting on support at around 0.9270, the pair recovered, riding on a pause in the USD rally and returning back to 0.9340.
Slightly better than expected Australian data helped it tick a bit higher – enough for a break against the yen but not against the greenback, at least for now.
Australia reported a trade balance deficit of 1.36 billion in July, better than 1.77 expected and better than in June. The latter’s figure was revised from 1.68 to 1.56 billion. Retail sales for July came out with a rise of 0.4%, as predicted.
The Aussie continued enjoyed the stronger than expected GDP number from yesterday. AUD/JPY reached 98.18, the highest level since May 2013. AUD/USD peaked at 0.9363 before retreating back to range, but this is the higher range, not the lower one.
Here is the hourly chart:
As the major Australian events of the week are behind us, we may be able to mark another successful week for the A$. Even if the US dollar resumes its rally, the Aussie is set to beat other currencies.
0.95 seems to be a line in the sand for Glenn Stevens and co. Nevertheless, Australia’s strong growth, perfect credit rating and still healthy economy are set to attract investors in a yield hungry world.
For more, see the Aussie dollar forecast.
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