'Dynamic' Australian Economy Sees Retail Sales Plunge: AUD Plunges

http://www.bloomberg.com/apps/news?pid=20601087&sid=aT7oDHkvG6ow&pos=3

Yen Rises as Drop in Australia’s Retail Sales Stokes Concerns
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By Yoshiaki Nohara and Ron Harui

Nov. 4 (Bloomberg) -- The yen rose against the euro for a second day as an unexpected drop in Australia’s retail sales stoked concerns about the global economic recovery, boosting demand for Japan’s currency as a refuge.

The yen rose against 15 of its 16 major counterparts on speculation the European Central Bank tomorrow will refrain from raising interest rates to cement an economic recovery. The U.S. dollar fell against the yen on speculation the Federal Reserve will today repeat its pledge to keep the benchmark interest rate near zero for an “extended period.”

“The unexpected slump in Australian retail sales is sparking worries about the sustainability of the recovery there,” said Takashi Kudo, director of foreign-exchange sales in Tokyo at NTT SmartTrade Inc., a unit of Nippon Telegraph & Telephone Corp. “This is causing risk aversion and buying of the yen and the dollar as safe-haven currencies.”

The yen advanced to 132.75 per euro at 10:19 a.m. in Tokyo from 133.01 in New York yesterday. Japan’s currency strengthened to 90.15 against the dollar from 90.33. The greenback traded at $1.4723 per euro from $1.4724.

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.
Last Updated: November 3, 2009 20:25 EST

 

i regret that post i misread sorry.