AUD/USD reaches fresh highs for Nov on slight retails sales pick up

AUD/USD has made fresh highs for the month, the highest levels since 25th October, on the back of very little in the recent data to end the week for the Aussie.  Currently, AUD/USD is trading at 0.7694, up 0.13% on the day, having posted a daily high at 0.7699 and low at 0.7679.

We have just had the release of Australia's Sept retail sales came at +0.6% vs 0.4% exp and 0.4% last and also the RBA’s Statement on Monetary Policy (SoMP), although with the RBA failing to provide fresh clues into monetary policy. The RBA kept the cash rate on hold at 1.5% this time around, as expected,  with little change to the statement compared to Sep and Oct. However, there had some hawkish addition, as noted by analysts at TD Securities, " Upgrading near-term Chinese activity, noting ‘brisk’ house price inflation, and policy settings are expected to generate ’sustainable’ growth and higher inflation but overall, the economy is forecast to grow at close to its potential rate, and inflation is expected to pick up gradually,"

Overnight, the Aussie had been propelled to recent highs on the back of a soft greenback as investors remain cautious around the elections. Stocks tumbled, gold rallied, and the Aussie was bid on the back of a narrowing trade deficit yesterday with an uptick in the Chinese service PMI to 52.4 in October from previous 52.0. High iron and coal prices are also underpinning the AUD. 

Metals

"Industrial metals were stronger across the board as a stronger USD and positive fundamentals boosted investor sentiment. Glencore’s announcement that its zinc production had fallen 30% over the past nine months typified the tightness being experienced in various base metal markets. Iron ore also edged higher with steel prices in China once again the main driver," - ANZ 

AUD/USD levels

Spot is presently trading at 0.7682, and next resistance can be seen at 0.7699 (Daily High), 0.7702 (Daily Classic R1), 0.7722 (Daily Classic R2), 0.7722 (Monthly High) and 0.7754 (Daily Classic R3). Support below can be found at 0.7689 (Yesterday's High), 0.7688 (Weekly Classic R1), 0.7683 (Daily Open), 0.7683 (Weekly High) and 0.7679 (Daily Low).