Australia Retail Sales Actual 0.3%, Expected 0.5%, Previous 2.2%
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 0.3 percent in March which is lower than analysts’ forecasts of a 0.5 percent increase. In original terms, Australian turnover decreased by 0.8% in April 2009 compared with March 2009. There was no percentage change for Chains and other large retailers (which are completely enumerated), while the estimate for 'smaller' retailers decreased by 2.3%. Australian turnover increased by 7.2% in April 2009 compared with April 2008. Chains and other large retailers increased by 10.4%, while the estimate for 'smaller' retailers increased by 2.0%.
Forex Technical Reaction: The Australian dollar has weakened slightly since the release. Since the day started the pair has gained 40 pips and is trading just below the 0.8050 level.