Update on AUD/USD
The external factors are driving the price, and not data. The AUD/USD traded in a range between 0.7157 to 0.7189 at the beginning of the week. After a large opening gap, the price has recovered and is now idle at the 0.7180s. As shown here, however, there is a path of least resistance that could lead to the downside.
Price Analysis: An excursion into the 0.7090’s might be in the cards
Information about Retail Sales
The Retail Sales is the primary indicator of Australia’s consumer spending. It is released by Statistics Australia (ABS) approximately 35 days after the end of each month. It is responsible for about 80% of the total retail turnover in Australia and has an important impact on GDP and inflation.
This leading indicator has an correlation to inflation and the growth prospects. It impacts the Reserve Bank of Australia (RBA’s) interest rate decision and AUD valuation. The forward factor method is used by the stats bureau to ensure that seasonal factors are not affected by COVID-19.
