Preliminary figures for Australia’s retail sales for the first quarter (Q1) of 2023 are released to the market early on Tuesday . Following a surprise rate hike, the market consensus points to a worse print of -0.4% QoQ compared to -0.2% earlier. Creating a challenge for the Reserve Bank of Australia (RBA) hawks.
Today’s Australian Retail Sales data is critical for AUDUSD traders. In light of the Reserve Bank of Australia’s (RBA) most recent hawkish surprise despite weaker Aussie inflation data and challenges to mood.
How may Q1 retail sales impact AUDUSD?
In advance of the report, the AUDUSD declines from a three-week high and breaks a six-day uptrend. This accurately captures the market’s cautious attitude. As well as skepticism over the RBA’s hawkish approach before to the important data. The US Dollar’s recovery and the tracking of stronger yields in the midst of ambivalent market mood. Are both exerting downward pressure on the quotation.
Despite this, rumors of an Australian recession, along with worries over Australia’s higher than average interest rates. And a potential slowdown in economic activity, give AUDUSD bears reason for optimism. Ahead of the crucial Australian Q1 Retail Sales numbers.
It’s important to note that the Westpac Consumer Confidence for May plunges to -1.7% from 9.4% and warns of additional declines in the quotation should the planned Retail Sales numbers disappoint or come in below estimates.
Technically speaking, the 100-DMA resistance level of around 0.6790 combines the daily chart’s extremely overbought RSI (14) line to pose a challenge to the AUDUSD bulls. Increasing the upside filters’ strength is the horizontal region made up of levels that have been noted since mid-February, around 0.6880.
