Thursday, 7 Jan 2010

Aussie Sees New Highs Following Retail Sales Report

Following a better then expected Australian Retail Sales report, the Aussie came out ahead in trading today, reaching new heights against most of its counterparts. AUD reached a 2-year high against the Euro, and is currently trading around the 1.5590 level. Against the Yen, AUD reached a 15-month high and is currently trading around the 85.50 level. The strong performance has led investors to speculate whether Australia will raise interest rates yet again in February.

The U.S. Dollar held onto its recent gains throughout the day, as investors are gearing up for the U.S. Non-Farm Employment Change figures set to be released at 13:30 GMT tomorrow. The report is a leading indicator of American economic health and it is almost certain to create heavy market volatility. If the report comes in better then expected, the Dollar may take some losses as investors turn to riskier currencies like the Aussie and Euro. If the figure comes in below predictions, the Dollar could see gains as investors revert to its safe-haven status.