AUD: Economic Data Surprised on the Upside - BBH
Research Team at BBH, notes that the Australian dollar is the best performing major currency today, gaining about 0.4%.
“It has recouped most of yesterday's losses but remains a cent lower on the week after the RBA's rate cut surprised many. Economic data surprised on the upside today. March retail sales rose 0.4% (0.3% expected) after a 0.1% rise in February. In volume terms, retail sales rose 0.5% in Q1, nearly matching the 0.6% gain in Q4 15.
Australia's March trade deficit was smaller at A$2.16 bln, and revisions to the February imbalance saw a 10% cut in the shortfall. These reports bode well for Q1 GDP forecasts ahead of the release at the end of the month. Separately, new homes sales rose 8.9% in March, the largest gain since 2010 and offsets in full the 5.3% decline in February.
The Australian dollar ignored news that China's Caixin services PMI slipped to 51.8 from 52.2. Coupled with the softer manufacturing reading, the composite eased to 50.8 from 51.3. The average in Q1 was 50.5. The Australian dollar needs to overcome resistance seen in the $0.7520-$0.7540 area to begin repairing the technical damage suffered earlier in the week.”