AUDUSD holds 69 cents after some robust data whilst RBA considers hiking interest rates ahead of the next meeting.
AUDUSD – 4-Hour Chart
Australian Retail sales in Australia increased by 1.4% month-over-month to AUD 35.92 billion in November 2022, accelerating from an upwardly revised 0.4% growth in the previous month and exceeding market forecasts of a 0.6% rise.
This was the 10th straight month of rise in retail trade and the most robust pace since January, boosted by Black Friday sales. Clothing, footwear, and personal accessory retailing had the most significant rise (6.4% vs. 0.4% in October) following slower growth in recent months, while sales in department stores bounced back strongly (5.4% vs. -0.2%). Meanwhile, sales of household goods retailing quickened (2.1% vs. 0.2%), led by furniture retailing; and other retailing went up the most in three months (1.1% vs. 0.3%). Meanwhile, sales of food retailing and cafes, restaurants, and takeaway food services increased the least since February (0.1% vs. 0.6%). Retail turnover rose in all states and territories.
The strength in demand was reflected in separate ABS data on consumer prices which showed annual inflation re-accelerated to 7.3% in November after a surprise dip to 6.9% in October. Therefore, suppose inflation is confirmed to climb back, the RBA should consider keeping the hike rate in the next meeting.
