The local currency has copped another walloping over the past 24 hours, this time as a result of poor retail sales figures which were released yesterday morning. Economists had expected to see some signs of life in retail sales with a forecast figure of 0.3% for last month, however what materialised was -0.1%. And to throw insult to injury the ABS (Australian Bureau of Statistics) then also revised the March reading lower, from 0.4% to -0.2%.
The retail sales figures when considered, suggests that the housing bubble and burden of private debt which stands at over 123% of GDP is causing mortgage strapped Australians to spend less in order to service their ballooning debt payments. This cannot be good for an economy which is barely moving forward while wages growth are mostly stagnant and probably means any further rate hikes are very much shelved, which means a lower Aussie dollar.
We have no local data releases today however economists and traders will be digesting last nights Budget Release and its potential implications on the Australian economy and the Aussie dollar - some initial good signs out of the budget is that us younger folk will be able to salary sacrifice into our super accounts (and get the associated tax benefits) to save for a first home deposit. The other good news is a big infrastructure spend on road and rail.
DATA RELEASES TODAY:
EUR - ECB President Draghi Speaks at 10.00pm
NZD - Official Cash Rate & RBNZ Statement at 7.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7296
AUD/GBP – 0.5625
AUD/EUR – 0.6703
AUD/NZD – 1.0611
AUD/JPY – 83.143
***Above rates are indicative wholesale rates and intended as a guide only***
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