AUD, NZD Failed to Rise Despite Strong Economic Data - Kakiforex.com - Financial Market Media No. 1 in the World AUD, NZD Failed to Rise Despite Strong Economic Data AUD, NZD Failed to Rise Despite Strong Economic Data

April 21, 2021

AUD, NZD Failed to Rise Despite Strong Economic Data

 Asian session -focused data saw Australian retail sales post encouraging readings in March, in line with increases in consumer confidence and spending and the easing of restrictions across the country.


According to data released by the Australian Bureau of Statistics (ABS) on the Asian session, retail sales rose 1.4% in March from a 0.8% contraction in February, and beat market expectations for a 1% rise.


With the Australian Central Bank (RBA) maintaining its current monetary policy, the economy is expected to continue its strong recovery from the recession caused by Covid-19.



However, the Aussie dollar failed to capitalize on the upside from this positive reading, and even declined lower due to the rise of the US dollar, as well as being affected by falling commodity prices.


In addition to Australian retail sales data, the market was also marked by the release of New Zealand inflation data which exceeded expectations by rising 1.5% in the first quarter of 2021 from 1.4% previously recorded and forecast.


Although this data reading has little effect on the movement of the kiwi dollar, the currency is still trying to hold on around its almost 4 -week high as the US dollar returns to record gains.


Market sentiment returned to risk as concerns over the sharp rise in Covid-19 cases in India caused the outlook for the global economy to recover quickly to turn bleak.