Australia: Mixed economic releases – BBH

Economists had expected Australian retail sales to have grown by around 0.3% after a flat report in July but instead, retail sales fell by 0.6% in August, and, adding insult to injury, revised the July report to show a 0.2% decline, notes the analysis team at BBH.  

Key Quotes

“It is the first back-to-back decline in five years.  News that the July trade surplus was near twice the initial estimate (now ~A$808 mln) and that the August surplus was a bit larger than expected (~A$989 mln) was not sufficient to offset, and indeed may have made possible by the compression of domestic demand.”  

“The Australian dollar is finding some support near $0.7820 after it reached a one-week high yesterday near $0.7875.  The week's low, which is also a two and a half month low, was recorded near $0.7785.  There do not appear to be large options struck near the money expiring today, but there is an A$1.1 bln option that will be cut tomorrow struck at $0.7800.”