The Australian currency lost around 0.3% on Thursday versus the greenback, as effect of the disappointing retail sales outweigh strong trade surplus. Earlier that day Australian Bureau of Statistics said the nation's retailers had weaker-than-forecasted sales in February, as concerns over job security weighed on consumers' sentiment. Sales climbed only 0.2% following a 1.2% surge seen in January and missing markets' estimation for a 0.3% growth. Earlier this month Westpac Bank said that a drop in confidence surrounding jobs was reflected in spending patterns, resulting in a more conservative approach to spending.
While domestic demand disappointed, the resource-rich economy managed to log its fourth straight monthly trade surplus in February, even as exports remained almost unchanged, while imports advanced 1%. The trade surplus stood at $1.2 billion in February, down from January's excess of $1.43 billion.
Both Australian and New Zealand currencies were the top performers during the last several weeks, as central banks' comments provided a lift to both currencies. After all, each rally will come to the conclusion sooner of later, and now it seems South Pacific nation's currencies are forming tops, as recovery in the U.S. diminish RBNZ's and RBA's interest-rate advantage.
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