The primary gauge of Australia’s consumer spending, the Retail Sales, released by the Australian Bureau of Statistics (ABS) has come in as follows:

• Australia Retail Sales (MoM) May: 0.9% (est 0.4%; prev 0.9%).

AUD/USD has rallied don the data some 10 pips so far with eyes on 0.6920 from the session lows of 0.6897.

In the 5-min chart above, the Aussie is seen rallying on the data and eyes on the prior highs near 0.6920. The W-formation, however, is a reversion pattern, so the price could end up revisiting the neckline near 0.6950 immanatly. 

About Retail Sales

Retail Sales account for approximately 80% of total retail turnover in the country and, therefore, has a significant bearing on inflation and GDP. This leading indicator has a direct correlation with inflation and the growth prospects, impacting the Reserve Bank of Australia’s (RBA) interest rates decision and AUD valuation. The stats bureau uses the forward factor method, ensuring that the seasonal factors are not distorted by COVID-19 impacts.