The Aussie stopped rising. Overview for 29.03.2022

After several trading sessions of growth, AUDUSD took a break. 

The Australian Dollar is consolidating against the USD. The current quote for the instrument is 0.7481.

Market players are focused on geopolitical tensions and energy prices growth, that’s why their responses to the statistics are rather restrained. 

Earlier today, Australia reported on the Retail Sales for February – the indicator added 1.8% m/m against the expected reading of 1.0% m/m and continue the momentum that started in January. In response to the data, the Aussie rose a little bit.  

The Retail Sales data is very important for understanding the economic growth rate and consumption parameters. Based on the fact that the retail sales cover about 80% of the entire retail turnover, one may form a quite realistic impression of what is happening. Moreover, the indicator has a direct correlation with inflation and the GDP growth rate. The stronger the retail sales data, the better for the AUD.

The Reserve Bank of Australia is monitoring this data and using it in its estimations of the Australian economy.