The Australian dollar fell in the Asian market on Tuesday against a basket of global currencies, abandoning the highest level in two weeks against its American counterpart, due to the activity of correction and profit-taking operations, and under the pressure of negative retail sales data in Australia.
Sales decreased at the largest pace in a year, a strong indication of the slowdown in economic activities in Australia during the last quarter of last year, reducing pressure on monetary policy makers at the Reserve Bank of Australia to keep interest rates high for as long as possible this year.
Price view
Australian dollar exchange rate today
The Australian dollar fell against its American counterpart by approximately 0.15% to (0.6602), from the opening price of today’s trading at (0.6610), and recorded the highest level at (0.6624), the highest since January 16 of this year.
On Monday, the Australian dollar achieved an increase of 0.5%, the second gain within the last three days, amid improved risk appetite in the markets and a rise in stocks on Wall Street.
retail sales
Data released recently in Sydney showed that retail sales in the country fell by 2.7% in December, the largest decline since December 2022, exceeding market expectations for a decline of 1.9%, and sales recorded an increase of 1.6% in November.
Retail sales are considered one of the most important indicators for measuring consumer spending, which represents two-thirds of the country's gross domestic product, and therefore the current negative readings indicate an economic slowdown in Australia.
A succession of weak economic data in Australia may force the Reserve Bank of Australia to ease monetary policy and lower interest rates as soon as possible this year.
Australian interest
Most analysts expected that the Reserve Bank of Australia would keep interest rates unchanged throughout 2024. However, weak economic data indicating the possibility of a faster recession in Australia, increases the odds of a cut in Australian interest rates in the second half of this year. .
Artistic look
The Australian dollar is trying positively - Analysis - 01-30-2024
