Created
: 2024.04.30
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Australia's Retail Sales drop 0.4% MoM in March vs. 0.2% expected
World FX news
Breaking news
Australia's Retail Sales drop 0.4% MoM in March vs. 0.2% expected
New
2024.04.30 10:34
2024.04.30 10:34
2024.04.30 10:34
Australia's Retail Sales, a measure of the country's consumer spending, dropped 0.4% MoM in March from the previous reading of a 0.3% rise, according to the official data published by the Australian Bureau of Statistics (ABS) on Tuesday. The figure came in weaker than market expectations with an increase of 0.2%.
Market reaction
The Australian Dollar (AUD) attracts some sellers following the downbeat Retail Sales data. The AUD/USD pair is down 0.17% on the day at 0.6554.
a
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2024.04.30
Related articles
USD/NOK with light losses on quiet Friday, cautious Fed supports the USD
2024.05.18 03:05Canadian Dollar sticks to the middle on tepid Friday
2024.05.18 02:33Mexican Peso hits four-week high on hawkish Banxico remarks
2024.05.18 02:25US Dollar stands neutral as Fed officials remain cautious
2024.05.18 01:47Forecasting the Coming Week: Fedspeak and FOMC Minutes should rule the sentiment
2024.05.18 00:40GBP/USD Price Analysis: Rallies toward 1.2700, bulls' target YTD high
2024.05.18 00:08
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Dow Jones Industrial Average adrift on quiet Friday volumes
The Dow Jones Industrial Average (DJIA) is on the high side as markets wind down a hectic trading week that saw rate cut hopes return to the forefront after US Consumer Price Index (CPI) inflation eased to a three-month low.
New
2024.05.18 03:12USD/NOK with light losses on quiet Friday, cautious Fed supports the USD
The USD/NOK stands mildly down on Friday with the Greenback holding its ground thanks to the cautious tone of the Federal Reserve (Fed) officials.
New
2024.05.18 03:05Canadian Dollar sticks to the middle on tepid Friday
The Canadian Dollar (CAD) is trading softly on a low-volatility Friday, sticking close to the midrange.
New
2024.05.18 02:33Mexican Peso hits four-week high on hawkish Banxico remarks
The Mexican Peso continues to record gains versus the US Dollar, refreshing its four-week high as the rally continued.
New
2024.05.18 02:25US Dollar stands neutral as Fed officials remain cautious
The US Dollar Index (DXY) is currently trading at 104.50, maintaining a neutral stance.
New
2024.05.18 01:47Forecasting the Coming Week: Fedspeak and FOMC Minutes should rule the sentiment
The Greenback lost further ground and dropped to multi-week lows on the back of rising expectations of interest rate cuts by the Fed, a view that was further reinforced by lower US CPI data in April The Greenback remained on the back foot and dragged the USD Index (DXY) to the 104.00 zone amidst an equally downward move in US yields.
New
2024.05.18 00:40GBP/USD Price Analysis: Rallies toward 1.2700, bulls' target YTD high
The British Pound registers gains of 0.21% against the US Dollar, although higher US Treasury yields failed to underpin the Greenback.
New
2024.05.18 00:08Fed's Waller does not comment on policy or economic outlook
Federal Reserve (Fed) Governor Christopher Waller delivered a prepared speech at the International Organization for Standardization Technical Committee 68 Financial Services 44th Plenary Meeting on Friday but refrained from commenting on the monetary policy or the economic outlook.
New
2024.05.17 23:49Silver Price Forecast: XAG/USD posts fresh multi-year high at $30.50 on firm Fed rate-cut prospects
Silver price (XAG/USD) refreshes multi-year high at $30.50 in Friday's New York session.
New
2024.05.17 23:43WTI trades sideways around $79.00 with eyes on PBoC policy decision
West Texas Intermediate (WTI), futures on NYMEX, are stuck in a tight range slightly below $79.00 in Friday's New York session.
New
2024.05.17 23:11Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
