Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Australian Retail Recovers In January

By FSM NewsMarket OverviewMar 06, 2017 07:07AM ET
www.investing.com/analysis/australian-retail-recovers-in-january-200177897
Australian Retail Recovers In January
By FSM News   |  Mar 06, 2017 07:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Australian Retail Sales Data For January Came In On Monday With Results In Line With Analysts’ Forecasts At 0.4% Growth, Rebounding From December’s 0.1% Decline.

After the dismal 0.1% decline in retail sales in Australia last December, the nation was able to recover for the January retail sales by 0.4%, as most of its industries, states, and territories saw growth. Analysts attributed the better retail sales for the start of the year to a better spending in volatility rather than longer-term trend expenses.

On Monday the Australian Bureau of Statistics reported Australia’s January Retail Trade data which saw a seasonally adjusted retail sales increase in January of $25.73 billion, up by 0.4%, and in line with analysts’ expectations. The increase in January’s data follows a 0.1% decline from the previous month due to lower-than-expected demand during the holiday season, and a 0.1% increase in November.

For the year-on-year comparison of trend terms, Australian turnover increased 3.2%, while the trend estimate for January 2017 climbed 0.2%, a 0.3% increase in December 2016, and a 0.3% increase in November 2016.

Retail by industry saw more growth under the household goods retailing by a 1.4% increase, followed by cafes, restaurants and takeaway food services by 1.1%, food retailing by o. 2%, and other retailing by 0.1%.

However, these growths were slightly offset by the decline in the clothing, footwear and personal accessories retailing sector by 0.4% and with the department store sales down by 0.5%.

ABS attributed the strong growth in household goods to a rise in electrical and electronic goods industry subgroup, which climbed 2.4%, while the hardware, building, and garden supplies retailing subgroup saw a 1.1% increase, while the Furniture, floor coverings, Houseware and textile goods retailing rose 0.5%.

For the total retail sales by state, Australian Capital Territory saw more growth by 1.2%, followed by the Victoria State at 1.1% increase, South Australia at 0.6%, Tasmania 0.4%, Western Australia 0.3%, New South Wales 0.2%, and Queensland remained unchanged, while the Northern Territory fell 0.8%.

Although the growth during the month gave a positive start for Australia, analysts still believe that if the retail activity of the nation only continues with a 0.4% increase for every month for the entire first quarter of the year, the government would still struggle with the consumption growth. In addition to that, a slow wage growth and employment growth poses a threat to overall yearly economic growth.

Meanwhile, the Reserve Bank of Australia is expected to release a new monetary policy on Tuesday. The country’s interest rate is currently at 1.5% and speculated by most economists to remain the same for the whole year, despite the lagging wage growth and inflation rates below the central bank’s target.

Australian currency status

The Australian dollar opened lower against the US dollar at 0.7596 but was able to recover within the day after the release of the January Retail trade data. Last week, AUD lost almost 1% starting the week (Feb 27) at 0.7673 and falling to 0.7543 on Friday (Mar 03).

Upon the time of writing, AUD started surging once more in the market, climbing to 0.7603 0939 GMT. In previous releases of retail trade data, the Australian has also been affected by the government data, with the November 2016 data helping the dollar get a boost due to strong sales, and December 2016 data driving the AUD on a downward trade due to 0.1% decrease.

Although there are still several other economic indicators and factors in the currency price movement in the forex market, it still proves that release of the country’s various economic performance data impacts its currency in the market.

For the technical indicators summary, AUD still got a ‘Strong Buy’ summary from most analysts for time periods 5 mins, 15 mins, and hourly basis, but received a ‘Strong Sell’ for daily traders seeing that the currency is still very vulnerable at the moment.

The Australian benchmark index ASX 200 closed 0.29% or $16.91 higher to $5746. 51 after the release of the January retail sales data.

Australian Retail Recovers In January
 

Related Articles

Australian Retail Recovers In January

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email