Australia Retail Sales 02/03/10

7:30pm NY Time AU Retail Sales  Forecast 0.3%   Previous 1.4%
ACTION:         BUY 0.9%      SELL -0.3%      AUD/USD

We’ll be focusing once again today on the Australian Retail Sales m/m release and we are looking for a deviation of 0.6% from the forecast release of 0.3%. If we get a 0.9% or -0.3%, we’d get in either on a LONG or SHORT trade depending on the release with a high probability of seeing the market move over 50 pips in the next 2 hours.

The Australian Dollar has been declining since the past 2 weeks, and with yesterday’s RBA decision to keep rates unchanged, the fundamental bullish outlook of AUD was also changed to a more neutral stance.  Therefore, with this Retail Sales we could see some volatility in the AUD in either direction, as the long term bias for LONG AUD is at a crucial point.

DEFINITION

“Measures the value of sales at the retail level. A rising trend has a positive effect on the nation’s currency because Retail Sales make up a large portion of consumer spending, which is a major driver of the economy and has a sizable impact on GDP. Traders payclose attention to Retail Sales because it is usually the first significant indicator of the month that relates to consumer behavior and is susceptible to surprises.”

Related posts:

1. Australia Retail Sales m/m 03/01/2010
2. Australia Retail Sales 03/30/2010
3. Australia Retail Sales Trading Plan 05/31/10
4. Australia Retail Sales m/m 12/02/09
5. Australia Retail Sales Forex Trading Plan 12/01/10
6. Forex News Trading Australia Retail Sales m/m 08/31/11
7. Australian Retail Sales Forex Trading Strategy
8. Australian Retail Sales m/m 01/06/10
9. Forex News Trade AU Retail Sales m/m 6/1/11
10. Forex News Trading Australian Retail Sales 11/03/10

Tagged as: aud usd, Australian Dollar, Bullish Outlook, Consumer Behavior, Consumer Spending, GDP, Interest rate, monetary policy, RBA, retail level, Retail Sales, retail sector, risk aversion