Aussie Rallies, Struggles to Keep Gains

The Australian dollar rallied today as economic data from both Australia and overseas was supportive for the currency. Nevertheless, the Aussie is struggling to keep gains right now.

Australia’s trade balance shrank from A$2.71 billion in August to A$2.32 billion in September instead of rising as had been predicted by economists. Seasonally adjusted retail sales grew 0.4 percent in September, the same as in August and in line with expectations. The only negative indicator released from Australia today was the seasonally adjusted Australian Industry Group Performance of Services Index that dropped from 52.3 to 48.9 in October.

Meanwhile, the Caixin China General Services PMI was at 52.0 in October, up from September’s 14-month low of 50.5. The index exceeded analysts’ expectations.

Economic data, being rather positive for the most part, helped the Aussie to gain for the fourth straight session.

AUD/USD gained from 0.7185 to 0.7208 as of 6:28 GMT today. EUR/AUD fell from 1.5252 to 1.5191. AUD/JPY was up from 86.98 to 87.24 but retreated from the intraday high of 87.58.

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