Data is here:
Australian August retail sales +0.7% m/m (expected +0.4%)
The Australian Bureau of Statistics have slotted in a ready made narrative:
“Retail spending was boosted this month by warmer-than-usual weather for this time of year.
“This year was the warmest August on record since 1910, which saw more spending on items typically purchased in spring. This included summer clothing, liquor, outdoor dining, hardware, gardening items, camping goods and outdoor equipment.The lift in turnover from the warmer weather was also boosted by higher discretionary spending as consumers took advantage of Father’s Day sales events during the month,”
I wrote in the data post that:
The retail sales number is the focus, indicating resilient household spending. This will be an argument against RBA rate cuts any time soon.
Despite the ABS stories the market response is leaning towards trimming pricing for an RBA rate cut.
AUD/USD a little higher:
This article was written by Eamonn Sheridan at www.forexlive.com.
