Aussie retails sales miss expectations and Financial Stability Review arrives (AUD -10%)

  • Retails sales: A softer than the expected after a notably weak -0.1% MoM, and 2.4% YoY in July.
  • The Financial Stability Review: Despite these risks, the financial system is generally resilient.

The Aussie is flat following the release of the Australia August Retail Sales that have just arrived, normally a data set that causes a decent move, but ahead of the Nonfarm Payrolls later today, the markets are thin and traders are sitting on their hands waiting for the outcome. 

We had a softer than the expected after a notably weak -0.1% MoM, and 2.4% YoY in July.

The data arrived as follows:

0.4% MoM  (estimate 0.5% ; previous -0.1%).

At the same time, the biannual RBA Financial Stability Review was released and we now await RBA Assistant Governor (Economic) Ellis who speaks in Geelong, 1:20 pm AEST.

About Retail Sales

They are 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.

The Financial Stability Review 

  • In Australia, yields have fallen substantially with asset prices rising further.
  • The cuts to the cash rate, and the resulting reductions in borrowing rates, have contributed to a turnaround in some established housing markets.
  • Despite slower economic growth domestically, businesses' profitability has remained around its historical average.
  • A downturn in the global economy, asset price falls or reduced availability and increased cost of borrowing could be quickly transmitted to Australia through trade and financial links.
  • In the current environment, there are many possible triggers for dislocation in financial markets.
  • In the near term, risks from falls in housing prices have reduced but still exist. 
  • Despite these risks, the financial system is generally resilient.

About the Financial Stability Review

The Financial Stability Review provides the Bank's assessment of the current condition of the financial system and potential risks to financial stability. It contains a number of boxes on topics of special interest, along with occasional articles. The Review is issued half-yearly.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News