On Thursday the Aussie dollar rose to three-and-a-half month highs against its
U.S. peer, as Wednesday's U.S. retail sales report continued to dampen the sentiment for the dollar.
The greenback was also weaker against the New Zealand dollar, as the latter was supported by strong retail sales data from New Zealand
Earlier, Statistics New Zealand reported that retail sales rose
by 2.7% in the first quarter, exceeding expectations for a 1.5% rise,
after a 1.7% gain in the three months to December.
Core retail sales, which exclude automobiles and gas stations, rose 2.9% in the three months to March, beating expectations for a 1.5% gain. The shift in core retails for the last quarter of 2014 was revised to a 1.9% increase from a previously estimated 1.5% rise.
Another data showed that New Zealand's Business Manufacturing Index slipped to 51.8 last month from 54.6 in March, whose figure was revised from a previously estimated reading of 54.5.
In the meantime, the dollar was vulnerable after the U.S. Commerce Department said on Wednesday that retail sales were unchanged, compared to expectations for a 0.2% increase.
Core retail sales, which exclude automobile sales, rose just 0.1%, undershooting forecasts for a 0.5% gain.
The soft data spurred speculation that the Federal Reserve will delay hiking rates until later in the year, after recent figures showed that the U.S. economy expanded just 0.2% in the first quarter.
The U.S. is expected to publish reports on producer prices and initial jobless claims.
