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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The modest 0.2% rise in Australian retail sales last month will lower pressure on the Reserve Bank of Australia (RBA) to raise interest rates at its April 4 board meeting.
The Australian Bureau of Statistics (ABS) figures released on Tuesday showed the slight increase, which followed a 1.8% rise in January 2023. According to RBA Governor Philip Lowe, retail sales data – alongside inflation, employment and business confidence metrics – is an important input into the the central bank's interest rate calculation. Overnight index swaps (OIS) indicate the RBA will keep rates steady at 3.6% on Tuesday, with OIS pricing in a 25bp cut by December.
Lowe said earlier this month the RBA was monitoring the outlook for household spending given high inflation and rising interest rates.
Retail sales appear to have levelled after a period of increased volatility over the last three months, said Ben Dorber, head of retail statistics at the ABS. “Spending in food related industries continued to grow steadily in February, with cafes restaurants and takeaway food services up 0.5%, while food retailing rose 0.2%," he said in a statement.
The impact on the Australian dollar was negligible following the data’s release. (See: AUD: A$ Firmer, Limited Reaction To As Expected Retail Sales)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.