The focus was the inflation data:
- Australian Q2 core inflation +0.8% q/q (expected 1.0%)
- AUD/USD has dropped under 0.6500 after core inflation comes in lower than expected
The lower than expected core reading removes the prospect of a rate hike by the Reserve Bank of Australia at its meeting next week on August 5 and 6.
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As for the retail sales data on the month, it's a strong beat (the 'but' is below). The Australian Bureau of Statistics cite mid-year sales. I would have thought this would be accounted for in seasonal adjustment.
More:
- sales volumes -0.3% q/q and -0.6% y/y ... this while Australia's population is rising by around 2.6% annually.
- per capita (per person), sales down 0.9% q/q, the 8th consecutive quarter falling and down 3% y/y
