Aussie heads higher after positive US data

The pound lost further ground against the Australian dollar yesterday as better-than-expected retail sales data out of the US prompted demand for the higher-yielding Aussie.

• Equity markets is Asia extended their recent rally in early trading yesterday, boosting demand for the Australian dollar. Mining continued their recent upwards trend – good news for commodity-rich Australia.
  
• Better-than-expected retail sales data out of the US also boosted risk appetite in markets. The Aussie continues to enjoy a significant yield advantage over the pound with the Reserve Bank of Australia’s benchmark interest rate standing at 2.5%.
  
• Unemployment figures are released in the UK today, whilst nothing major is due for release in Australia. Expect trading to take direction off equity markets and broader market movements.