Australian Dollar Slides On Soft Retail Sales Data

Australian Dollar Slides On Soft Retail Sales Data

The Australian dollar fell against other major currencies in the early Asian session on Thursday after a report showed that domestic retail sales increased less than economists had expected.

Data from the Australian Bureau of Statistics showed that retail sales in Australia grew 0.2 percent month-on-month on a seasonally adjusted basis in August.

This was slower than the expected 0.4 percent increase and followed a 0.8 percent fall in July and 1.2 percent rise in June.

Another data showed that building approvals in Australia increased 6.4 percent month-on-month in August.

The number of approvals totaled 12,046 during the month on a seasonally adjusted basis. Year-on-year, total building consents plunged 15.4 percent on a seasonally adjusted basis.

The aussie touched 1.0184 against the U.S. dollar, its lowest level in 4 weeks. On the downside, the aussie may breach 1.01 level. The pair closed deals at 1.0218 yesterday.

Against its European counterpart, the aussie declined to 1.2685 for the first time since June 11. The euro-aussie pair ended Wednesday's trading at 1.2638. The next downside target level for the aussie is likely at 1.28.

The aussie is now trading at 79.98 against the yen and 1.2433 against the NZ dollar, down from Wednesday's closing value of 80.22 and 1.2471, respectively. If the aussie slides further, it may target 79.00 against the yen and 1.24 against the kiwi.

Against the Canadian dollar, the aussie that closed deals at 1.0093 Wednesday declined to 1.0060 after the data. The next support level for the aussie-loonie pair is seen at 1.00.

Looking ahead, Swiss industrial production for the second quarter is due in the European session.

At 7:00 am ET, Bank of England will announce interest rate decision. The bank is widely expected to maintain interest rates at 0.50 percent.

European Central Bank's rate decision is due at 7:45 am ET. Analysts expect the central bank to keep interest rates on hold at 0.75 percent.

U.S. weekly jobless claims for the week ended September 29, factory orders for August and Canada's Ivey PMI for September are slated for release in the American morning session.

U.S. Fed will release the minutes from its September 12-13 meeting at 2:00 pm ET.