Australian dollar recovers as US retail sales fall

THE Australian dollar is firmer after an unexpected dip in American retail sales dented the greenback.

Australian one dollar coins

THE Australian dollar is firmer after an unexpected dip in American retail sales dented the greenback.

At 0700 AEDT on Friday, the local currency was trading at 77.00 US cents, up from 76.20 cents on Thursday.

The unit rose above 77 US cents during the early hours of Friday morning after new data showed that US retail sales fell by 0.6 per cent in February, marking the third straight month of decline. “The Australian dollar’s had a bit of a move higher overnight. Broadly, it’s been a beneficiary of a weaker US dollar,” Bank of New Zealand strategist Kymberly Martin said from Wellington. “That was really cemented by US retail sales number. It was quite disappointing, relative to expectation, and as a result of that, it drove the US dollar lower, really across the board.” Economists had expected the Commerce Department figures to show a 0.3 per cent rise.

Freezing temperatures and snowstorms were blamed for the poor February result.

Traders are watching US data closely to see what it means for a possible mid-year American rate rise.

The Australian dollar recovered on Thursday after official local data showed a drop in unemployment during February, helping the currency climb back above 76 US cents.

This came several hours after it had hit a six-year low against the greenback.

Originally published as Australian dollar recovers as US retail sales fall