The Australian dollar spiked higher against other major currencies in early Asian trading on Wednesday after a government report showed that the nation's retail sales increased more than expected in May.
Data from the Australian Bureau of Statistics showed that retail sales rose a seasonally adjusted 0.5 percent on month in May. That beat forecasts for an increase of 0.2 percent following the upwardly revised 0.1 percent gain in April - which was initially called lower by 0.2 percent.
The Australian dollar that ended Tuesday's trading at 1.0285 against the US dollar broke 1.03 level in early Asian deals on Wednesday for the first time since May 03. The aussie-greenback reached a fresh 2-month high of 1.0322 with 1.040 seen as the next upside target level.
Against the euro, the Australian dollar rose to a fresh 4- 1/2 -month high of 1.2210, compared to yesterday's close of 1.2265. If the aussie advances further, it will break 1.220 and target the 1.214 level.
The Australian dollar jumped a 5-day high of 1.0452 against the Canadian dollar and the next upside target level for the aussie is seen at 1.046. The aussie-loonie pair ended yesterday's trading at 1.0413.
The Australian dollar climbed to a fresh 2-month high of 82.24 against the Japanese yen from yesterday's close of 82.06. If the aussie-yen pair gains further, 83.0 is seen as the next target level.
The Australian dollar also strengthened against the New Zealand dollar, hitting a 2-day high of 1.2809. On the upside, 1.282 is seen as the next target level for the aussie. At yesterday's close, the aussie-kiwi pair was quoted at 1.2790.
Looking ahead, China's HSBC services PMI for June is due at 10:30 pm ET.
In the European session, final services PMI reports for June from Italy, France, Germany, U.K. and Eurozone, U.K. housing equity withdrawal report for the first quarter and the Eurozone retail sales for May are slated for release.
The U.S. financial markets are closed for the Independence Day holiday.
by RTT Staff Writer
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