Other Australian data: Retail sales for June 0.5% m/m (expected +0.2%)

The focus was the inflation data:

• Australian Q2 core inflation +0.8% q/q (expected 1.0%)
• AUD/USD has dropped under 0.6500 after core inflation comes in lower than expected

The lower than expected core reading removes the prospect of a rate hike by the Reserve Bank of Australia at its meeting next week on August 5 and 6.

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As for the retail sales data on the month, it’s a strong beat (the ‘but’ is below). The Australian Bureau of Statistics cite mid-year sales. I would have thought this would be accounted for in seasonal adjustment.

More:

• sales volumes -0.3% q/q and -0.6% y/y … this while Australia’s population is rising by around 2.6% annually.
• per capita (per person), sales down 0.9% q/q, the 8th consecutive quarter falling and down 3% y/y

This article was written by Eamonn Sheridan at www.forexlive.com.