The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
How will AUD React to Australian Retail Sales?
What will happen?
Australian monthly retail sales will be announced at 04:30 MT time (GMT+3) on Wednesday, July 21. This indicator reflects the change in the total value of sales in a country during a month at the retail level. In other words, it shows how much more stuff people bought during the reference month than in the previous one.
The last report showed that retail sales in Australia rose by 0.4% month-over-month in June 2021. This marked the third consecutive month of increase but at the slowest pace in this sequence. It’s interesting to see whether the tendency continues or not.
How to trade on Australian Retail Sales?
- If retail sales significantly increase in Australia, the AUD is likely to rise.
- If retail sales drop, the AUD can fall.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
The next week is going to be interesting for traders. The US, UK, and Canada will reveal the inflation data. Australia will show the labor numbers, while New Zealand – GDP growth.
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).