Australia's official May data continued today with Retail Sales. For the month (M/M) this arrived for May below expectations at 0.1% (exp 0.2%; previous -0.1%).
This is going to keep the rate cut buzz alive since the RBA tipped its hat to further cuts to come down the line if things do not improve. The RBA repeated that the “main domestic uncertainty continues to be the outlook for consumption.”
Looking back, as analysts at Westpac noted, "April produced a disappointing -0.1%mth decline, trimming annual growth to 2.8% (recall this series is in current prices). The details showed signs of further pressure from the slide in Sydney and Melbourne house prices, which should remain a factor in May. Westpac looks for a 0.1% uptick in May; consensus is 0.2%."
The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes and it''s considered as 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.
Source : FXstreet