AUD/USD reaches fresh 4-month high after US retail sales

FXStreet (Córdoba) - AUD/USD extended gains and reached a fresh 4-month high as the dollar weakened on the back off disappointing US retail sales data.

US retail sales were flat in April, while excluding autos sales rose by 0.1%, missing expectations of 0.2% and 0.5% increases for the headline and the core respectively.

The Australian dollar was already among the best performers on Wednesday when the recovery of the AUD/USD was fueled by weak US data. AUD/USD broke above 0.8050 and climbed to a high of 0.8096 in recent dealings.

At time of writing, the pair is trading at 0.8090, recording a 1.44% gain on the day. If the Aussie manages to break decisively above 0.8100, its could accelerate towards 0.8133 (Jan 22 high), which stands as immediate resistance.

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