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AUD/USD remains bid despite below-forecast Australian retail sales

7/4/2019, 4:31:49 PMMarket Analysis
AUD/USD remains bid despite below-forecast Australian retail sales

The Australian dollar is showing resilience to weaker-than-expected Australian macro data release. 

As of writing, the AUD/USD pair is trading at 0.7037, representing a 0.12% rise on a 24-hour basis. 

The data released by the Australian Bureau of Statistics at 01:30 GMT showed the consumer spending, as represented by retail sales, rose 0.1% month-on-month in May, missing the expected rise of 0.2% by a narrow margin. Retail sales had dropped by 0.1% in April. 

Despite the weaker-than-expected rebound in Australia’s retail sales the AUD is looking to extend gains – the pair has added five pips following the retail sales release. 

The bid tone around the AUD could be associated with the risk-on rally in the US stocks. The Dow Jones Industrial Average surged to record highs on Wednesday. 

Further, the news that Australia’s government is close to securing sweeping tax cut plan may be adding to the bullish pressures around the AUD.