Trade Desk Thoughts - Australia Retail Sales Trend

Australia Retail Sales Trend Actual 0.3%, Previous 0.1%

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.

Trade Desk Thoughts: Retail sales in Australia have increased by 0.3 percent for the month of August. All industries except other retailing had an increase in the trend, but industries with the largest increase were food, clothing, soft goods, cafes, restaurants, and takeaway food services. The trend estimate for the Australian retail series increased by 3.2 percent when compared to the previous year to August.

Forex Technical Reaction: The Australian dollar has not had much of a reacting in response to this release. The pair is still below the neutral LFB pivot point and the 20 day SMA positioned around the .8080 area.

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