Australia Retail Sales Actual 2.2%, Expected 0.5%, Previous -2.0%
Release Explanation: This release is a very important set of figures that make up a large percentage of consumer spending numbers. “Retail sales are the measure of the total sales of goods and services by retail stores. Retail Sales is an important measure of consumer spending and inflationary pressures. A currency will be impacted by this report over time as it reveals the strength of the public in their ability, or desire, to spend. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With retail trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the economy”, TheLFB-Forex.com Trade Team said.
Trade Desk Thoughts: Retail sales in Australia have increased by 2.2 percent in March which is higher than analysts’ forecasts of a 0.5 percent increase. In seasonally adjusted terms, all industries had an increase in March. Over half of the Australian economy is related to consumer spending. In order to renew more spending the Reserve Bank of Australia has reduced interest rates to a 45 year low.
Forex Technical Reaction: The Australian dollar weakened significantly in the minutes after the release, and has dropped 30 pips since the start of the Asian session.