Trading the News: Australia Retail Sales
- Australia Retail Sales to Increase 0.2% in March. Consumption to Narrow to 0.6% from 0.9% in 4Q 2017.
- AUD/USD Rate Continues to Carve Higher-Lows. Outlook Mired Bearish Trends.
A marked slowdown in Australia Retail Sales may keep AUD/USD under pressure as it dampens the outlook for growth and inflation.
The fresh updates mayencourages the Reserve Bank of Australia (RBA) to carry the record-low cash rate into the second-half of 2018 as ‘inflation is likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing,’ and Governor Philip Lowe & Co. may stick to a wait-and-see approach at the next meeting on June 5 as ‘the low level of interest rates is continuing to support the Australian economy.’
In turn, a batch of lackluster data prints may produce headwinds for the Australian dollar at is dampens bets for an RBA rate-hike in 2018. Nevertheless, a set of above-forecast developments may trigger a bullish reaction in AUD/USD as it puts pressure on the central bank to start normalizing monetary policy.Sign up and join DailyFX Currency Analyst David Song LIVE for a broader discussion on current themes and potential trade setups!
Impact that Australia Retail Sales has had on AUD/USD during the last print
(1 Hour post event )
(End of Day post event)