Aussie Retail Sales fell 4.2% from July to August, AUD unnerved

Australian Bureau of Statistics says preliminary Retail Sales fell 4.2% from July to Aug vs the surprise 3.2% prior.

However, there has been no reaction in the market as the data is subject to revisions. 

ABS:

A preliminary estimate for Australian retail turnover for August 2020

Is based on preliminary data provided by businesses that make-up approximately 80% of total retail turnover and is therefore subject to revision. 

More from ABS:

 Victoria saw large falls across all industries, except food retailing as a strict lockdown saw many businesses shut their doors to customers. Although the falls were the largest in Victoria, there were also declines in most other states, the data from the Australian Bureau of Statistics (ABS) showed. 

Excluding Victoria, retail trade across the rest of the country fell 1.5% in August, from July.

AUD/USD trades at 0.7132 down some 0.5% on the day so far in a strong USD environment. 

RBA’s Debelle’s speech on Tuesday knocked the wind out of the bulls when he commented on the policy tools that are still on the table, such as a market intervention and negtaive rates.

We don’t think he pointed to a move in October, but some in the market disagree,

analysts at ANZ bank argued.

Description of the data

The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes and it''s considered as an indicator of the pace of the Australian economy.

It shows the performance of the retail sector over the short and mid-term. Positive economic growth anticipates bullish trends for the AUD, while a low reading is seen as negative or bearish.