Investing.com - The Australian dollar slid against its U.S. rival during Wednesday’s Asian session following the release of another glum economic data point from down under.
In Asian trading Wednesday, AUD/USD slipped 0.33% to 1.0357. The pair was likely to find support at 1.0393, Tuesday’s low and resistance at 1.0475, the high of January 30.
Earlier today, Australia’s Bureau of Statistics said retail sales there fell for a third consecutive month in December. Australian retail sales dipped by 0.2% to AUD21.4 billion. That reading compares with a November reading which also showed a decline of 0.2%. Analysts expected a December increase of 0.3%.
The three-month stretch in which Australian retail sales have declined is the country’s longest such streak in 13 years. On an inflation-adjusted basis, the December number rose 0.1%, but analysts still expected a 0.3% increase on that basis.
News of the declining retail sales comes a day after the Reserve Bank of Australia opted against another interest rate cut at its meeting. That sent the AUD/USD plunging. On Monday, official data showed that building approvals in Australia dropped 4.4% in December, disappointing expectations for a 1% rise, after a 3.4% increase the previous month.
A separate report showed that job advertisements in Australia fell 0.90% in January, following a 2.80% decline the previous month.
While RBA did not lower rates this weeks, odds slightly favor a rate cut next month. A move to pare Australia’s benchmark rate to 2.75% would mean a record low. Most traders seem to be betting another RBA rate cut is not a matter of "if," but "when."
Elsewhere, AUD/JPY dropped 0.18% to 97.12 while EUR/AUD climbed 0.33% to 1.3118. AUD/NZD fell 0.28% to 1.2259.
In Asian trading Wednesday, AUD/USD slipped 0.33% to 1.0357. The pair was likely to find support at 1.0393, Tuesday’s low and resistance at 1.0475, the high of January 30.
Earlier today, Australia’s Bureau of Statistics said retail sales there fell for a third consecutive month in December. Australian retail sales dipped by 0.2% to AUD21.4 billion. That reading compares with a November reading which also showed a decline of 0.2%. Analysts expected a December increase of 0.3%.
The three-month stretch in which Australian retail sales have declined is the country’s longest such streak in 13 years. On an inflation-adjusted basis, the December number rose 0.1%, but analysts still expected a 0.3% increase on that basis.
News of the declining retail sales comes a day after the Reserve Bank of Australia opted against another interest rate cut at its meeting. That sent the AUD/USD plunging. On Monday, official data showed that building approvals in Australia dropped 4.4% in December, disappointing expectations for a 1% rise, after a 3.4% increase the previous month.
A separate report showed that job advertisements in Australia fell 0.90% in January, following a 2.80% decline the previous month.
While RBA did not lower rates this weeks, odds slightly favor a rate cut next month. A move to pare Australia’s benchmark rate to 2.75% would mean a record low. Most traders seem to be betting another RBA rate cut is not a matter of "if," but "when."
Elsewhere, AUD/JPY dropped 0.18% to 97.12 while EUR/AUD climbed 0.33% to 1.3118. AUD/NZD fell 0.28% to 1.2259.