CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

AU slips after weak Australian retail sales data is revealed

The Australian dollar has suffered after new data reveals disappointing Australian retail figures. The Australian retail turnover remained unchanged in July 2018, following a 0.4% rise in June.

 

bg_trader_234075212

The ABS has released retail figures showing the Australian retail turnover unchanged (0.0 per cent) in July 2018, following a slight 0.4% rise in June.

The Australian dollar slipped below 0.7170 upon the news on Monday, which was worse than expected, showing falls in three of six industries. The Australian dollar opened on Monday at the lowest level since January 2016. 

The data feeds growing concerns from the RBA of high levels of household debt.

Household goods retailing led the falls, with shoppers holding back on spends in clothing, and footwear. Personal accessory retailing, dropped 2.0%, and department stores fell 1.9 %.

"The falls were offset by rises in other retailing (1.7 %), food (0.3 %) and cafes, restaurants and takeaway food services (0.6 %)". said Director of Quarterly Economy Wide Surveys, Ben James.

Analysts say the flat results reflect concerns over the increasing weakness of the Australian consumer.

The ABS also released business indicator data showing trend estimates for inventories rose 0.6% in the June quarter 2018. While, the trend estimates for manufacturing sales of goods and services fell 0.1% this quarter.

The trend estimates fell for wholesale trade sales of goods, dropped 0.6% this quarter, while Australian turnover rose 3.2% in July 2018 compared with July last year. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer