Australian Retail Sales overview
Early Friday at 01:30 GMT sees the latest seasonally-adjusted Retail Sales for July, forecast to clock in at just 0.3% versus the previous month’s figure of 0.4%. After this week’s disappointing balance of trade figures for Australia, expectations for Retail Sales are low, especially after the AIG Performance of Services Index slumped to new lows at 53.6 (last 63.0). Australia continues to suffer from a lack of positive-leaning economic data, though today’s impact from Retail Sales is likely to be muted in either direction as broader markets shift their attention towards the US’ upcoming Non-Farm Payrolls release due later in the day.
How could it affect the AUD/USD?
The Aussie is currently floating near recent lows for the pair after consolidating through most of July’s market action, and as noted by FXStreet’s own Valeria Bednarik: “Technically, the pair is at the lower end of its range, pointing to test the 0.7300 region where strong buying interest has surged multiple times these last few weeks. Shorter term, and according to the 4 hours chart, the risk is skewed to the downside although lacking momentum, as the pair is developing below converging moving averages, while technical indicators stabilized well into negative territory.”
Support levels: 0.7330 0.7300 0.7250
Resistance levels: 0.7400 0.7445 0.7485
Key notes
Australian Dollar resumes downtrend – Trade wars heat up
AUD/USD analysis: Aussie at risk of retesting yearly lows
About the Australian 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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