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AU slips after weak Australian retail sales data is revealed

The Australian dollar has suffered after new data reveals disappointing Australian retail figures. The Australian retail turnover remained unchanged in July 2018, following a 0.4% rise in June.

IG Analyst

Publication date : 2018-09-03T03:43:37+0100

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The ABS has released retail figures showing the Australian retail turnover unchanged (0.0 per cent) in July 2018, following a slight 0.4% rise in June.

The Australian dollar slipped below 0.7170 upon the news on Monday, which was worse than expected, showing falls in three of six industries. The Australian dollar opened on Monday at the lowest level since January 2016.

The data feeds growing concerns from the RBA of high levels of household debt.

Household goods retailing led the falls, with shoppers holding back on spends in clothing, and footwear. Personal accessory retailing, dropped 2.0%, and department stores fell 1.9 %.

"The falls were offset by rises in other retailing (1.7 %), food (0.3 %) and cafes, restaurants and takeaway food services (0.6 %)". said Director of Quarterly Economy Wide Surveys, Ben James.

Analysts say the flat results reflect concerns over the increasing weakness of the Australian consumer.

The ABS also released business indicator data showing trend estimates for inventories rose 0.6% in the June quarter 2018. While, the trend estimates for manufacturing sales of goods and services fell 0.1% this quarter.

The trend estimates fell for wholesale trade sales of goods, dropped 0.6% this quarter, while Australian turnover rose 3.2% in July 2018 compared with July last year.

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