#AUDUSD @ 0.66572 When is Australia Retail Sales and how could it affect ?
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Early Tuesday, the market sees preliminary readings of Australia’s seasonally adjusted Retail Sales for February month at 00:30 GMT. Market consensus suggests a softer seasonally adjusted monthly print of 0.4% versus 1.9% prior, suggesting a reduction in the pressure for the Reserve Bank of Australia (RBA) to act faster to tame inflation woes.
Given the recently softer Aussie inflation data and the mixed comments from the Reserve Bank of Australia’s (RBA) officials, not to forget the challenges to sentiment ahead of the month-end consolidation, today’s Aussie Retail Sales data appears crucial for the AUD/USD traders.
It should be noted that comments from Assistant Governor (Economic) at the Reserve Bank of Australia, Luci Ellis, scheduled for 04:15 AM GMT, also increase the importance of the Asia-Pacific economic calendar on Tuesday.
Ahead of the data, Westpac said,
AUD/USD extends the week-start rebound to refresh intraday high around 0.6660 heading into the key Aussie event. It’s worth noting that the firmer sentiment and broad US Dollar weakness underpins the risk-barometer pair’s latest run-up while the pre-data anxiety seems to test the bulls of late.
That said, the recent chatters surrounding the Aussie recession, amid fears of comparatively higher rates in Australia than the US, may also seek validation from today’s Aussie Retail Sales data. Hence, recovery in the key statistics may allow the AUD/USD buyers to extend the latest rebound to cross the immediate technical hurdle while a negative surprise, which is more likely, could recall the Aussie pair buyer by highlighting the hawkish Fed concerns.
It should be noted, however, that Wednesday’s Aussie Consumer Price Index (CPI) also increases the importance of today’s Retail Sales data as any disappointment from the figures could prod the firmer inflation-led run-up of the AUD/USD pair.
Technically, AUD/USD rebound remains elusive unless providing a sustained daily close beyond 0.6700 support-turned-resistance comprising lower line of the short-term rising wedge.
AUD/USD continues to juggle below 0.6660 ahead of Australian Retail Sales and CPI data
AUD/USD Forecast: More weakness below 0.6630
The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers based on a sampling of retail stores of different types and sizes and it’s considered an indicator of the pace of the Australian economy. It shows the performance of the retail sector over the short and mid-term. Positive economic growth anticipates bullish trends for the AUD, while a low reading is seen as negative or bearish.
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