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:
- Seasonally adjusted estimate fell 1.5% MoM.
- +5.2% in September 2020 compared with September 2019 YoY.
The states will continue to experience divergent conditions, Victoria set to be weak again.
AUD/USD update
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:
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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.
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