Aussie Retail Sales MoM: -1.7%, better than expected, AUD supported
|Australia August Retail Sales are out which show the data when restrictions intensified across the major states over the period.
Australia August Retail Sales
Australia Retail Sales (MoM) Aug: -1.7% (est -2.5%, prev -2.7%).
AUD/USD reaction
Leading into the data, it was acknowledged that the price was pressuring a critical area of hourly support as follows:
The data has supported the Aussie in this zone and there has been no follow-through to the downside as illustrated on the 5-min chart as follows:
AUD/USD holds in 0.7271 and is down 0.22% on the day so far.
Why do Retail Sales matter to traders?
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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