The Australian dollar extended its record high after a report indicated that retail sales grew for the first time in three months, providing support for speculations that the South Pacific nation will raise interest rates before the end of the year.
The Aussie is the best performing currency among the 6 majors in 2009 due to the country’s resilience from the global slump which affected other regions, specially North America and Europe more than the South Pacific. This week, the Australian currency found support to extend its rally as retail sales climbed for the first time in three months, making the current September the biggest winning streak for the Aussie in a month in a quarter of century as the chances of rate hikes emerge in Australia by the day, with an eventual shift in the Reserve Bank of Australia policy to be expected as soon as November, making the South Pacific nation the first country to raise interest rates after the global slump struck the world last year.
Market sentiment towards the Australian currency remains strong and positive, according to analysts. The retail sales figures added to an already very optimistic outlook for the Australian economy, and the Aussie is unlikely to decline significantly before the end of the year, at least.
AUD/USD traded at 0.8794 as of 7:06 GMT from 0.8739 in the intraday comparison. AUD/CAD traded at 0.9491 from 0.9478.
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