Another Tepid Month of Retail Sales Sends Aussie Lower Versus The U.S. Dollar
The Australian dollar lost ground against its American counterpart on Friday following the release of disappointing retail sales. Meanwhile, market participants were awaiting data on U.S. nonfarm payrolls scheduled to be published later in the day.
The Aussie dropped 0.57 percent versus the U.S. dollar to trade at $0.76700 in European morning trading session on Friday, sending the pair AUDUSD to the lowest level since Wednesday. Data released by the Australian Bureau of Statistics showed that the country’s September retail sales were flat following an unexpected decline in August.
The reading was well below analysts’ expectations calling for a rise of 0.4 percent and marked the third month that Australian retail sales came in flat or declined. A disappointing September figure left retail prices in the third quarter down 0.3 percent, the biggest drop since 2004.
Meanwhile, the U.S. dollar was treading water ahead of data on U.S. labour market. A report published by the Automatic Data Processing showed private employers added 235,000 jobs in October. The result helped fuel expectation for an upbeat nonfarm payrolls report due Friday.
Economists expect the report to show the world’s largest economy added 300,000 new jobs in October after having shed jobs for the first time since 2010 in the previous month due to weather disruptions from a string of hurricanes.
Meanwhile, average hourly earnings figures are expected to rise 0.2 percent on October and jobless rate is forecast to remain unchanged at 4.2 percent.
Sell Stop at 0.76700, Take profit at 0.76250, Stop loss at 0.76900