Retail Sales jump 1% in May, but building approvals fall heavily, -12.5%

Retails Sales jumped 1% in May, well above the forecast of 0.5%, as fiscal stimulus and low borrowing costs saw comsumption at department stores and cafes rise. Analysts say these elevated retail sales figure will continue as higher unemployment drags on households.

However Building approvals to build new homes fell 12.5% mth/mth in May well below the expected market forecast of+3.3%.

The AUDUSD had akneejerk reaction up on retail slaes figures then lower on Building approvals. It also would seem the market sees the retail figure as inflated because of the stimulus. I would say traders will sell if we see up towards 81c again.