The Aussie dollar surged to 81 cents on weak US data

There’s proof this morning that there is sometimes precious little the RBA can do to dampen the Aussie dollar. It surged to 81 cents overnight on the back of weaker than expected US retail sales.

At 0.8101 this morning, it’s up 1.65% over the past trading day since 7am yesterday. The euro is up 1.19% and the Kiwi is up 1.65%, so it’s not about the Aussie.

Key to the move, which took the Aussie to its highest level since January 21, is that not only did retail sales – which printed 0.0% against an expected rise of 0.2% for April – miss expectations but when auto sales were stripped out, the rise was just 0.1% against 0.5% expected.

This is worrying traders about what the Fed might do and when.

That means that the Aussie might rally further. 83 cents is now looking like a reasonable technical target. – audusd 14052015

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at