AUD aims for growth. Overview for 30.01.2024

The Australian dollar, paired with the US dollar, has slightly increased. The current AUDUSD exchange rate stands at 0.6610.

In December, retail sales in Australia declined more than expected, by 2.7% m/m instead of the anticipated 1.7%. The data represents the weakest performance for the year. Following the release of the statistics, Australian bonds continued to rise, increasing the three-year bond yield.

The decrease in retail sales followed a revision of November's data. Retailers offered substantial discounts during that month, reinforcing the previously established trend.

Consumers are evidently seeking more affordable offers as inflation increasingly impacts living standards.

The retail sales report could become a factor for consideration by the Reserve Bank of Australia at the upcoming meeting, scheduled for 5 or 6 February. Given that consumption contributes to more than half of the country’s GDP, any imbalance in this area poses significant issues.

The RBA’s interest rate currently stands at 4.35% per annum, the highest in the last 12 years. The RBA has previously indicated that achieving an inflationary balance might require further tightening of monetary conditions.