After being shunned by investors in the early parts of the year, now markets can’t get enough of the Australian dollar.
Overnight the currency continued to push higher against its US namesake, hitting a session high of .7374, a level not seen since December 4 last year.
In recent trade the AUD/USD has eased slightly, trading at .7355. Even with the small pull-back, the Aussie is still on track to record its largest two-day percentage gain since last May.
The Aussie has now rallied 7.8% since January 15, something the RBA will surely be getting nervous about.
As to whether the Aussie will continue its climb higher, a lot will come down to the release of Australian retail sales data for January at 11.30am AEDT.
Markets expect an increase of 0.4% following no growth in December.
Beyond the retail sales release, US non-farm payrolls for February, due out in the early hours of tomorrow morning, will be influential on the US dollar, hence the Aussie as a consequence.
Markets expect payrolls growth of 190,000 with the unemployment rate tipped to remain steady at 4.9%.
Average hourly earnings, perhaps the most important component of the release given its implications for the US inflation outlook, is expected to rise 0.2% having jumped 0.5% in January.
The report will be released at 12.30am AEDT.
Here’s the current Aussie Dollar scoreboard.
- AUD/USD 0.7355 , 0.0062 , 0.86%
- AUD/JPY 83.5 , 0.77 , 0.93%
- AUD/CNH 4.7923 , 0.0171 , 0.36%
- AUD/EUR 0.6701 , -0.0008 , -0.12%
- AUD/GBP 0.5179 , -0.0001 , -0.02%
- AUD/NZD 1.0915 , -0.0004 , -0.04%