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_retail_shoppers_1545451

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. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about