FXStreet (Barcelona) – The TD Securities Team reviews the Australian April retail sales and trade balance data release, noting that the April economic indicators came in below expectations.
Key Quotes
“Both Australian April data releases came in below expectations. Retail sales were flat vs a forecast+0.3% rise but it was the trade deficit that was the headline grabber, at –A$3.9b, nearly double street expectations, blowing out to a record.”
“Exports slumped 6% in April, while imports were up +4%. The unexpected fall in exports was partly attributable to a port closure on account of bad weather, with coal exports collapsing 22% in the month. On the positive side, tourism credits are up +13%/yr, reflecting the positive impact of the lower AUD and Japan remains Australia’s number 1 trade partner. As for retail sales, clothing and footwear rose 1.3%, but Dept store sales were weak (again( -0.7%/m). In the last 12 months, housing related good purchases have surged.”
“Port Headland iron ore export volumes hit a fresh record to 38mt in May from 36mt in April. Exports for the first 5 months of this year are up 13%on the same time last year. Despite this pick up in supply, iron ore prices touched a 3 month high earlier this week.”
(Market News Provided by FXstreet)