Australia: Strong retail sales data - TDS

Sandeep Kanihama FXStreet Contributor

Annette Beacher, Chief Asia-Pacific Macro Strategist at TD Securities, notes that Australia’s June and June quarter retail sales outpaced TD and consensus expectations.

Key Quotes

“Sales rose by +0.4%/m (TD +0.4%, mkt +0.3%) while Q2 volumes jumped by +1.2%/q (TD +0.7%/q, mkt +0.8%/q).”

“Sales volumes growth occurred across all the states, led by NSW (+0.5%pts) and Vic (+0.4%pts).”

“This rebound will relieve the RBA as the pace of consumer spending tends to be the #1 risk to the Bank's outlook. After decent Q2 trade, the RBA can maintain its glass-half full stance in next week's Board statement and the Statement on Monetary Policy.”

“Our Q2 GDP tracking is +0.9%/q or 3.0%/y, with construction and Capex released at the end of the month. We see at least 3% GDP growth this year and next via non-mining investment, public infrastructure and exports.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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