Australian Dollar Slides After Miss on April Retail Sales
The Australian economy continues to show signs of weakness, this time within the consumption component of the economy. April retail sales contracted by 0.2 percent from the previous month, well-below the consensus forecast of 0.2 percent growth, according to a Bloomberg News survey. This comes after growth of 1.1 percent in March, and represents the first contractionary reading since December, when sales fell by 0.1 percent.
AUDUSD 1-minute Chart: May 29, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the release, the Australian Dollar plunged across the board, with the most notable moves coming against the Japanese Yen and the US Dollar. The AUDJPY quickly dropped from 77.97 to a fresh session low at 77.71, while the AUDUSD slipped from 0.9810 to a fresh session low of 0.9769 in just a few minutes. Both pairs have rebounded, however, trading approximately 20-pips higher each following the market’s digestion of the release.
--- Written by Christopher Vecchio, Currency Analyst
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