Forex News, Fx News and Analysis
November 5, 2012 @ 7:36 am

AUDUSD moves higher on higher Australian retail sales numbers

The Australian government released retail sales data on Monday, which beat forecast and rose in September from the previous month.

The aussie firmed up and gained 20 pips against the US dollar in reaction to the 0.5 percent rise in retail sales. Forecasts were for a 0.4 percent increase.

Aussie gained back losses made against the US dollar on Friday, moving up to $1.0366 from $1.0335 in early Asian session trading.

However the data was neither overwhelmingly positive nor negative and provides little direction in terms of whether the Reserve Bank of Australia (RBA) will cut interest rates at its policy meeting tomorrow.

The numbers might not change the current forecasts of the RAB chopping off 25 basis points from the current 3.25 percent cash rate.

On the month the sales volumes showed an increase and some may say this signal an improvement in the Australian economy but if quarterly data are examined more closely, they show that sales are actually on the decline.

Over the last quarter, retail sales dropped by 0.1 per cent to $63.797 billion in seasonally adjusted volume terms.

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