Australia’s key release for today in the preliminary Retail Sales for September has just been released as follows by the Australian Bureau of Statistics, providing early estimates:
Key statistics
- The seasonally adjusted estimate fell 1.5% (-$448.6m) from August 2020 to September 2020.
- In seasonally adjusted terms, Australian turnover rose 5.2% in September 2020 compared with September 2019.
There were falls in turnover in Food retailing, Household goods retailing, and Other retailing, in September. Despite the month-on-month falls, these industries continue to trade at levels above September 2019.
Every state and territory, except the Northern Territory, fell this month. NSW, Queensland, Western Australia, and South Australia, led the month-on-month falls.
Victoria recorded a minor fall in September following a fall of 12.6% in August when the Stage-4 restrictions in Melbourne, and Stage-3 restrictions in regional Victoria were introduced. Victoria is the only state where turnover remains below levels recorded in September 2019.
In seasonally adjusted current price terms, the preliminary estimate shows the September quarter rose 6.8%. This follows a fall of 2.3% in the June quarter. Quarterly volume estimates will be included in the final release on 4 November 2020.
AUD/USD update
AUD/USD was steady o the release, trading at 0.7062.
The currency has been under pressure of late as the Reserve Bank of Australia tips the hat towards further easing as soon as November's meeting.
Yesterday, the RBA's Kent's rhetoric was the fuel that sent the Aussie over the edge.
He was mostly repeating Governor Lowe’s dovish stance of last week but apparently catching the markets off guard when saying that the benchmark BBSW rate might dip below zero:
RBA Kent's comments finally send AUD/USD through support
However, a risk-on session on Wall Street helped lift the currency back to test the structure, trimming losses to 0.7050 in late New York trade as follows:
Description of Retail Sales
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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.