Australia retail sales rose 0.1% mom in May, below expectation of 0.2% mom.
ABS Director of Quarterly Economy Wide Surveys, Ben James said: “There were mixed results across the industries with rises in Cafes, restaurant and takeaway food services (0.7%), Household goods retailing (0.5%), and Other retailing (0.6%). These rises were offset by falls in Food retailing (-0.3%), Department stores (-0.4%), and Clothing, footwear and personal accessory retailing (-0.2%).”
In seasonally adjusted terms, there were rises in Victoria (0.6%), South Australia (0.5%), the Australian Capital Territory (0.7%), and the Northern Territory (0.5%). There were falls in Queensland (-0.3%), New South Wales (-0.1%), Western Australia (-0.2%), and Tasmania (-0.4%).
AUD/JPY is steady despite the data miss. AUD is lifted this week despite RBA rate cut. Strong rise in iron ore price and solid export data are supporting the Aussie. A short term bottom should be in place at 73.93 after hitting 61.8% retracement of 70.27 to 80.71 at 74.25. For now, further rise is in favor as long as 75.13 minor support holds. Break of 76.28 resistance and sustained trading above 55 day EMA will bring stronger rebound to 61.8% retracement of 80.71 to 73.93 at 78.12. However, rejection by 55 day EMA, followed by 75.13 minor support, will likely resume the fall from 80.71 through 73.93 low.
