Aussie Retail Sales Up; Trade Surplus Muted

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The Australian economy posted solid gains in retail sales this morning concurrent with a report which showed the nation’s trade balance falling short of expectations. With yesterday’s shrinkage in the Australian GDP, traders have finally begun to weigh in on the Australian dollar’s (AUD) value.

Though the Aussie was able to withstand sell pressure early in the day Wednesday, by late afternoon trading the currency was sinking against its counterparts. A shift into safe-haven investments late yesterday also helped drive the Aussie further down considering its relatively higher yield. The triple whammy of weak GDP, muted growth in trade surplus and a shift into safe-havens have so far put significant pressure on the AUD in this week’s trading.

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