The Aussie Dollar Rises on as Consumer Confidence and Economic Data Surprises to the Upside

“Australia’s dollar touched a two- month high against its New Zealand counterpart after retail sales in the smaller nation unexpectedly fell.

The so-called Aussie reached the strongest level in a week against the U.S. dollar after reports showed Australia’s consumer confidence rose to a 19-month high. Demand for both South Pacific currencies was limited amid signs that Europe’s debt crisis is hampering the region’s recovery.

“New Zealand’s economy isn’t showing robust growth at present, and the retail sales didn’t help that,” said Hans Kunnen, the chief economist at St. George Bank Ltd. in Sydney. “The pace of economic growth in Australia is firmer, and we expect that to be reflected in the currency market.”

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