Australian dollar down on disappointing retail sales

[zzzzhu456]

The Australian dollar is once again below 75c against its US counterpart after a disappointing round of data confirms suspicions that the Australian economy is in mediocre shape.

Retail sales figures released earlier today from the Australian Bureau of Statistics hit the market at 0.0 percent against analysts’ expectations for a figure of 0.2 percent, and shows consumers are starting to feel the squeeze of higher living costs which is not being offset by a pick-up in wage growth.

 

[bigdolly]

The Australian dollar is once again below 75c against its US counterpart after a disappointing round of data confirms suspicions that the Australian economy is in mediocre shape.

Retail sales figures released earlier today from the Australian Bureau of Statistics hit the market at 0.0 percent against analysts’ expectations for a figure of 0.2 percent, and shows consumers are starting to feel the squeeze of higher living costs which is not being offset by a pick-up in wage growth.

I think AUD has low chances to rise because RBA signaled that it intends to keep rate unchanged at least till the summer of next year. While the Fed basically committed to raise rates till 3% what will increase rate differential between the countries. Bearish signal for AUD.

 

[Notati]

Interesting developments on USDAUD. Resistance line at 1.39 has been tested once again. Is this an indication of trend reversal? Anyway, next long term support at 1.3640