AUD/USD Maintains Up Trend after Positive Retail Sales

Wednesday, 30 March 2011 21:55

Despite a disappointing Building Approvals number (-7.4%), the 0.5% increase in Retail Sales along with a 0.5% increase in Private Client Credit helped the AUD/USD extend its record high above 1.0300.

In its release, the Australian Bureau of Statistics alleged that the decrease in Building Approvals was not a result of the Queensland flooding that happened at the start of the year.

With no resistance ahead, no one can foresee a stop to the impressive progress achieved since mid-March.

The strong response to the events in Libya and the Japan disaster suggest that only a change in the Fed’s monetary policy could put a halt the bullish trend.

UBS FX Strategist Gareth Berry says: "A slightly more hawkish Fed would have a huge impact”, he adds: “The sky really is the limit. I'd be reluctant to put a ceiling on this. It's a risky business to call a halt to Aussie upside".

The AUD/USD gained more than 6.4 percent since March 13.