Australian Dollar Falls After Retail Sales Miss Forecasts
November 02 2017 - 10:59PM
RTTF2
The Australian dollar slipped against its key counterparts in
the Asian session on Friday, as the nation's retail sales missed
forecasts in September, triggering hopes that the Reserve Bank of
Australia would keep rate on hold in the coming months.
Data from the Australian Bureau of Statistics showed that
Australia's retail sales remained flat in September, defying
economists' forecast for an increase.
The seasonally adjusted retail trade turnover showed no
variations in September, following a 0.5 percent fall in August.
Meanwhile, it was expected to rise by 0.4 percent.
Survey from the Australian Industry Group showed that
Australia's services sector continued to expand in October, but the
rate of growth eased slightly since September.
The Performance of Service Index, dropped to 51.4 in October
from 52.1 in September. However, any reading above 50 indicates
expansion in the sector.
Asian shares are mixed as traders digested details of the House
Republican tax reform bill as well as the announcement of President
Donald Trump to nominate Federal Reserve Governor Jerome Powell as
the successor to current Fed Chair Janet Yellen.
The currency was higher on Thursday, buoyed by impressive data
on Australia's building approvals and trade surplus in
September.
The aussie declined to a 3-day low of 0.9840 against the loonie,
compared to 0.9879 hit late New York Thursday. If the aussie slides
further, 0.97 is possibly seen as its next support level.
The aussie that ended yesterday's trading at 1.5114 against the
euro fell to a 2-day low of 1.5186. Continuation of the aussie's
downtrend may see it challenging support around the 1.53 mark.
The aussie slipped to 1.1063 against the kiwi, its lowest since
October 19. Further weakness may take the aussie to a support
around the 1.08 area.
The aussie fell to a 2-day low of 87.50 against the Japanese
yen, down from Thursday's closing quote of 87.99. The next possible
support for the aussie-yen pair is seen around the 86.00 level.
The aussie edged down to 0.7676 against the greenback from
Thursday's closing value of 0.7713. On the downside, the aussie may
challenge support around the 0.75 mark.
Looking ahead, U.K. services PMI for October are due in the
European session.
In the New York session, U.S. jobs data and ISM
non-manufacturing index for October and trade report and factory
orders for September, as well as Canada jobs data for October and
trade report for September are set for release.
At 12:15 pm ET, Minneapolis Fed President Neel Kashkari speaks
about monetary policy and the 2018 outlook at the Women in Housing
and Finance luncheon, in Washington DC.
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