Aussie Retail Sales arrives at 0.9% as expected, AUD/USD perky around 0.7105
|Australia's April Retail Sales have been released as follows:
Aussie Retail Sales
Australia April Retail Sales +0.9 pct m/m s/adj (Reuters poll +0.9 pct).
Prior to the data, analysts at Westpac argued that card spending indicators suggested retail sales should sustain strong momentum (March +1.6%), but explained weakening consumer sentiment and elevated prices add downside risk.
AUD/USD update
The data had failed to move the needle on the Aussie initially but a bid has come in four minutes following the release and it has moved higher to 0.7120 the high so far from 0.7105 on the data.
About Retail Sales
The primary gauge of Australia’s consumer spending, the Retail Sales, is released by the Australian Bureau of Statistics (ABS) about 35 days after the month ends. It accounts for approximately 80% of total retail turnover in the country and, therefore, has a significant bearing on inflation and GDP. This leading indicator has a direct correlation with inflation and the growth prospects, impacting the Reserve Bank of Australia’s (RBA) interest rates decision and AUD valuation. The stats bureau uses the forward factor method, ensuring that the seasonal factors are not distorted by COVID-19 impacts.
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