The Aussie continued to climb this morning following the release of the retail sales. For the month of February, the MoM retail sales increased by 0.6%, which was higher than the 0.3% and last month’s 0.2%. This was a surprising increase coming a day after the Reserve Bank of Australia (RBA) left interest rates unchanged.
The retail sales data was an increase from the data released last month, when they increased by 0.2% against the forecasted 0.4%. In the month before, the retail sales in the country declined by 0.5%. It is however than the 1.3% data released in November.
Yesterday, the RBA left interest rates unchanged and forecasted that the inflation rate would reach the target of 0.2% later this year. They were however worried about the risks about the falling house prices in Sydney and Melbourne.
The pair is now trading at 0.7697, which is significantly higher than the weekly low of 0.7600. It is also trading at the lower side of the Bollinger band.
In the coming days, the pair could continue to experience slight volatility as traders wait for key employment data from the United States. Today, we will receive the data from the private company, ADP about the private sector employment numbers. They are expected to show that 208K people were employed, compared to last month’s 235K. On Friday, we will receive the official NFP data.