Australian retail sales disappointed economists’ expectations in December by falling, according to data released on Thursday (Wednesday evening EST) by the country’s statistics bureau. Seasonally-adjusted, sales fell 0.7% month-over-month, underwhelming the consensus call for a 0.2% rise to bolster the revised 1.5% gain in November. Released simultaneously, Aussie building approvals also defied the consensus in December – however, their surprise was in the opposite direction. Approvals rose 2.2% on the month versus expectations for a flat reading. Nonetheless, the gain in approvals in December was a fraction of their upwardly-revised 10.4% rise the month before. Meanwhile, annualized, approvals increased 53.3% in December, overarching their expected 38.2% gain and previous 33.3% rise. Following the mixed data, AUD/USD sold off by 44 pips to hit $0.8778USD, its lowest level since Dec. 23, when it touched $0.8735USD. The latter level is AUD/USD’s next support to breach. It appears the Aussie dollar reacted to the disappointing retail data, with traders inferring that the Reserve Bank of Australia is now more likely to hold rates at 3.75% at its next meeting due to concerns about the recovery.
AUD/USD Falls to Fresh Six-Week Low Following Downbeat Retail Sales Data
Australian retail sales disappointed economists’ expectations in December by falling, according to data released on Thursday (Wednesday evening EST) by the country’s statistics bureau. Seasonally-adjusted, sales fell 0.7% month-over-month, underwhelming the consensus call for a 0.2% rise to bolster the revised 1.5% gain in November. Released simultaneously, Aussie building approvals also defied the consensus in December – however, their surprise was in the opposite direction. Approvals rose 2.2% on the month versus expectations for a flat reading. Nonetheless, the gain in approvals in December was a fraction of their upwardly-revised 10.4% rise the month before. Meanwhile, annualized, approvals increased 53.3% in December, overarching their expected 38.2% gain and previous 33.3% rise. Following the mixed data, AUD/USD sold off by 44 pips to hit $0.8778USD, its lowest level since Dec. 23, when it touched $0.8735USD. The latter level is AUD/USD’s next support to breach. It appears the Aussie dollar reacted to the disappointing retail data, with traders inferring that the Reserve Bank of Australia is now more likely to hold rates at 3.75% at its next meeting due to concerns about the recovery.
