- Paul Bloxham, chief Australia economist at HSBC Holdings Plc
Another portion of optimistic data from Oz country pushed the Aussie higher, with AUD/USD soaring more than 0.5% to as high as 0.9033, and still moving in a strong uptrend that began on Monday.
Moreover, the longer-term outlook now is also bullish, as the resource-rich economy is finally sending promising sings, suggesting that the RBA now is more likely to make a rate hike, rather than another cut. While economic growth picked up more than expected in the final quarter, the fact retail sales soared by the most in a year and exports rocketed to record highs, is giving the evidence the economy is finally stepping up a gear even amid waning mining boom. Australian trade surplus stood at A$1.43 billion in the first month of 2013, ballooning 142% from previous month's surplus and beating analysts' expectations, who projected a level of A$100 million. The main upside pressure came from exports that surged 4%, while imports advanced a stable 1%. With the mining projects switching to a production phase from investment, exports is projected to increase over the next couple of years, boosted by the recovery in the global economy.
While global conditions are improving, domestic demand is on the mend as well, with retail sales climbing 1.2% on a monthly basis in January, accelerating from 0.5% a month earlier, surpassing markets' expectations for a 0.4% gain.
© Dukascopy Bank SA