Australia released some solid data this morning, with both January retail sales (1.2% MoM versus 0.4% consensus) and trade data (AUD 1433 mn versus AUD 100 mn consensus) beating expectations. Following on from yesterday’s better than forecast Q4 GDP data the news gave a boost to AUD helping it to break 0.90 versus the USD. The data especially retail sales highlights the growing strength of the consumer in Australia and reaffirms that the next move in policy rates will be up. Taken together with a firmer tone to risk appetite and the relatively solid 7.5% official growth target set for China’s economy this year, AUD/USD is set to remain well supported.
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