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
Period
Data Released
Estimate
Actual
Pips Change
(1 Hour post event )
Pips Change
(End of Day post event)
FEB
2018
04/04/2018 01:30:00 GMT
0.3%
0.6%
+27
+32
February 2018 Australia Retail Sales
AUD/USD 5-Minute Chart
Household spending increased 0.6% in February after climbing 0.2% the month prior, with the pickup led by a 1.5% expansion in department store sales. A separate report showed an unexpected decline in Australia Building Approvals, with the figure narrowing an annualized 3.1% during the same period amid forecasts for a 0.3% rise.