Mixed Aussie data fails to make shakes in AUD/USD
Australian data dump arrived showing that the January Retail Sales +0.5% missed expectation of a Reuters poll +0.6% month on month and that the Australia Jan balance goods and services arrived at A$+10,142 mln vs a Reuter's poll of A$+6,500 mln.
- Exports +6 pct MoM.
- Imports -2 pct MoM.
The Aussie data is being watched closely as the forex space outs their bets on the commodity complex to outperform in a reflation trade environment.
Reuters explained that ''emerging market currencies of commodity-exporting nations are set to firm over the next 12 months as the world recovers from the coronavirus pandemic - and despite recent rises in US Treasury yields, a Reuters poll found on Thursday.''
''High-beta emerging market currencies, which last year achieved their best year since 2017 with gains of over 3%, have been in question after the benchmark 10-year US Treasury yield hit a one-year high last week.''
''Still, as investors ponder whether the world is entering a commodities cyclical upturn or a new supercycle, commodity-linked currencies are already firmer due to expectations of a boom.''
''Currencies of historically strong commodity exporters will trade resiliently.''
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
