US markets turned positive overnight, following some strong Retail Sales numbers, released overnight. Retail Sales surged 0.6% for June and 3.9% per annum, showing the strength of the consumer in a largely consumer driven economy. The strong economy and growing confidence in the US trade policy, is boosting equities and the US Dollar. The EUR slipped back below 1.1600, while the GBP traded around 1.3400, following the release of static UK inflation data.
The rising reserve added further downward pressure to commodity currencies, with the NZD struggling to hold 0.5900, while the AUD surrendered 0.6500. Australian Unemployment spiked to 4.3%, surprising markets and adding to the slide in the currency. The Australian labour market strength has been disguised for a long time, as much of the employment growth has been in the public sector, similar to the US economy under Biden.
