2013.04.0322:55:00UTC+00Australian Dollar Climbs As Retail Sales, Building Approvals Rise Unexpectedly

The Australian dollar advanced against other major currencies in early Asian deals on Thursday after the release of better-than-expected domestic retail sales and building approvals data.

Retail sales in February jumped a seasonally adjusted 1.3 percent on month in February, the Australian Bureau of Statistics said on Thursday, coming in at A$21.949 billion.

That blew away expectations for an increase of 0.3 percent on month following the upwardly revised 1.2 percent gain in January.

A separate report showed that the total number of building permits issued in Australia was up a seasonally adjusted 3.1 percent on month in February, standing at 13,371.

That beat forecasts for an increase of 2.5 percent following the upwardly revised 2.0 percent contraction in January.

The aussie climbed to a 2-day high of 1.2466 against the NZ dollar, recovering from an early low of 1.2420. If the aussie extends gain, it may break 1.255 level.

The Australian currency bounced back from early 2-day lows of 97.00 against the yen and 1.2301 against the euro and is trading at 97.56 and 1.2261, respectively. The aussie ended Wednesday's trading at 1.2287 against the single currency and 97.35 against the yen

The aussie that recovered from a session's low of 1.0605 against the loonie gained to 1.0642. The aussie-loonie pair is thus nearing closer to yesterday's 1-week high of 1.0648. The Australian currency may face next upside target around 1.07 level.

The aussie reached as high as 1.0492 against the greenback from a low of 1.0452 hit at 8:00 pm ET. The aussie is poised to find resistance around 1.06 level.

Looking ahead, the Bank of Japan's interest rate decision is due shortly. The central bank is expected to retain interest rates at 0.10 percent.

In the European session, PMIs from major European economies and Eurozone PPI for February are due.

The Bank of England will announce its interest rate decision at 7:00 am ET. The central bank is expected to hold rates at 0.50 percent.

At 7:45 am ET, the European Central Bank's interest rate decision is due. Economists forecast the central bank to maintain interest rates at 0.75 percent.

The U.S. weekly jobless claims for the week ended March 30 are due in the New York session.