Aussie Retail Sales worst than expected, AUD slides to fresh session lows

Ross J Burland FXStreet

Australia’s data focus is on June Retail Sales that has just been released as follows:

Australia Retail Sales for June, preliminary, arrived at -1.8% MoM vs the expected -0.5%.

Meanwhile, AUD/USD. already pressured by the spike in the delta variant today in Sydney and in general risk wariness, has been sent to fresh session lows of 0.7322 and falling ...

However, analysts at Westpac, prior to the rest, explained that the full impact of Victoria's restrictions will show in this survey which will be subject to revisions next time around.

''The lockdown in Sydney and another round of mini–lockdowns across multiple jurisdictions (QLD, WA, NT and VIC again) won’t hit until July.''

Overall, risk sentiment is fragile pertaining to the risk of the delay variant spreading worldwide.

New cases reported for the previous 24 hours are 110, up from 78 the previous day in Syndey. Neighbouring state Victoria reported a daily case number today at 22 from 13 the previous day.

Additionally, vaccines have been scrutinised for their effectiveness vs the variants and it does not read well:

Risk-off: bioRxiv study shows J&J vaccine may be less effective against Delta covid variant

This leaves a bearish environment for the higher beta currencies such as the Aussie.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.