THE AIR UP THERE: The Aussie dollar just closed at a 2-year high

Photo by Paul Kane/Getty Images

The Australian dollar continues to rip higher, finishing Friday’s session at the highest level since April 2016,

The 30-minute chart below tells the story of the week for the AUD/USD, gaining a massive 2.93%, the largest gain since March 2016.

It was nothing but one-way traffic, taking out a significant resistance level on Friday which only helped to fuel its gains.

AUD/USD 30-Minute Chart

The AUD/USD briefly hit a high .7834 during Friday’s session, just one pip below the high of .7835 stuck in 2016.

At .7828, it was also the highest close since May 20, 2015.

AUD/USD Weekly Chart

After being propelled higher earlier in the week on a combination of dovish commentary from US Federal Reserve Janet Yellen, strong domestic and Chinese economic data and gains in commodity prices, it was a series of weak US economic data releases on Friday that led to the latest buying binge in the Aussie.

US retail sales fell 0.2% in June, missing forecasts for a gain of 0.1%, while US consumer sentiment tumbled in July, hitting the lowest level since the immediate aftermath of the US presidential election in November last year.

Headline US CPI also undershot expectations in June, easing to 1.6% year-on-year from 1.9% May. Core CPI, which excludes movements in energy and food costs, remained steady at 1.7%.

Despite the unchanged core inflation reading, the weakness in the headline number did little to help the US dollar’s cause, especially given cautious remarks offered by US Fed chair Janet Yellen on the inflation outlook earlier in the week.

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