The data from Australia is due at 0130GMT. I put up a quickie idea of what to expect in this post.
NAB are looking for a 'modest' gain for May, based on their own propriety retail indictor, the cashless retail sales index. They add:
- Further, our tracking of fresh produce prices suggests that food sales growth was likely modest again
Westpac:
- Retail sales dipped slightly in April … Annual sales growth …. the slowest pace since mid 2018
- the sub-category and state detail point to wealth effect spillovers from the Sydney and Melbourne led housing market corrections weighing on sales
- Conditions look to have again been soft in May. Consumer sentiment remained stuck around neutral but with the detail showing clear pressure on family finances and elevated risk aversion. Wealth effect drags are likely to still be operating. Retail responses to private sector business surveys were very weak through Apr-May. On balance we expect May to show a slight 0.1% gain, mainly due to holiday effects but with risks to the downside.
Meanwhile, AUD went on a rip overnight. Better data on Wednesday did it no harm:
