- We have seen the release of Feb retail sales and trade balance data.
Australia’s retail sales:
Casting minds back, retail sales rose a modest 0.1% for the month, 2.7% for the year in January.
The consensus was for a pickup to 0.2%mth in Feb but given weak consumer sentiment, the number might have been expected to come in below expectations.
However, the data has come out as follows (big surprise to the upside):
Month: 0.8%
About 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.
Australia’s trade balance
Australia’s trade balance has been a bright light in a dark place for the Aussie of late. Dec 2018 and Jan 2019 were the second- and third-largest surpluses on record, – (Jan A$4.5bn).
Trade balance: 4801M, vs 3800M ex 4,549M and prior
Exports: 0%
Imports: -1%
About the trade balance
The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.
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