Aussie Advances with Retails Sales & China’s Services

The Australian dollar advanced today as domestic retail sales exceeded forecasts, giving hopes that the Reserve Bank of Australia will refrain from an interest rate cut. Positive data from China supported the currency too.

Australian retail sales advanced 0.8 percent in September from August, more than was forecast (0.5 percent). China’s services Purchasing Managers’ Index went up from 55.4 in September 56.3 in October, demonstrating fastest expansion in 14 months. Analysts think the Aussie has bottomed out last week and will not go much lower from the current level.

AUD/USD rose from 0.9454 to 0.9488 and AUD/JPY went up from 93.42 to 93.89 as of 11:54 GMT today.

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