The Australian Bureau of Statistics said reported today retail purchases lowered by....
The Australian Bureau of Statistics said reported today retail purchases lowered by 0.1% in December 2011 to $20.885 billion (AUD), seasonally adjusted. Economists had projected an increase by 0.3% for the month. They commented that expectations were higher as retailers had implemented promotions and price cuts. Despite these results, economists project that retail trade numbers will increase once effects of the latest interest rate are felt. The Reserve Bank of Australia (R.B.A.) cut interest rates in November and December resulting in a 4.25% rate from the previous 4.75% one. Historically, the country has seen retail sales increase three to four percent following similar cuts, according to Commonwealth Bank economist, James McIntyre. Additionally, analysts are awaiting national accounts’ figures of the quarter to get a better indication of consumer spending. Analysts do not expect weakening retail sales to have a large influence on R.B.A.’s decision for cutting the interest rate.
In other Australian news, the country’s job advertisements rose 6.0% in January 2012. This is the largest appreciation in almost two years and suggests Australia’s economy is undergoing a hiring increase. Job advertisements were increased to 191,423 in January 2012 which is 0.7% higher from January 2011. Increases were primarily seen over the internet climbing up 6.4% (183,406) in the month. On the other hand major metropolitan advertisements decreased 2.6% in January after rising 3.4% in December. Economists ascribe the results to a demand for workers in the mining areas. The pick-up brings optimism to the country after struggling last year with decreased consumer purchases and a high valued currency. Yet, the struggles brought on the R.B.A.’s rate reductions. With outlooks on the weakening global economy, the R.B.A. is expected to again lower the interest rate in the Tuesday’s policy meeting.
With the RBA interest rate decision looming later today, the AUDUSD has stalled after hitting resistance at 1.0800. If the RBA cuts rates as expected, we might see the AUDUSD head towards 1.0500. If the RBA keeps rates on hold, we might see the AUDUSD head back towards 1.0800.
Eugene Ross, Analyst
Admiral Markets
At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.
