Dollar rises on retail figures

THE dollar rose one fifth of a US cent after the release of stronger than expected retail trade data.

THE dollar rose one fifth of a US cent after the release of stronger than expected retail trade data.

Retail spending increased 1.1 per cent in April, official figures showed, well ahead of economists' forecasts of a 0.4 per cent rise.

Retail trade rose in the month to a seasonally adjusted $20.738 billion, compared to an upwardly revised $20.508 billion in March, the Australian Bureau of Statistics (ABS) said.

Straight after the data release at 11.30am AEST, the dollar rose to 106.48 US cents, up from 106.28 US cents in the seconds before the release.

The ABS also released data at the same time showing Australia's trade surplus narrowed in April.

The balance of goods and services was a surplus of $1.597 billion in April, seasonally adjusted, compared with a downwardly revised surplus of $1.691 billion in March.

Economists had tipped a surplus of $2.1 billion in the month.

The dollar ended yesterday's local session at 107.43 US cents.

It reached 110.11 US cents on May 3, the highest since it was floated in December 1983.