Better-than-expected Aus retail sales, trade balance

FXStreet (Bali) - The Australian economy showed better-than-expected retail sales and trade balance numbers, giving a boost to the AUD towards 0.8420.

Key headlines

Australia Imports: -2% (October) vs previous 6%

Australia Exports rose from previous 1% to 2% in October

Australia Trade Balance above forecasts (-1900M) in October: Actual (-1323M)

Australia Retail Sales s.a. (MoM) above expectations (0%) in October: Actual (0.4%)

Key points on retail sales

The trend estimate rose 0.4% in October 2014. This follows a rise of 0.4% in September 2014 and a rise of 0.4% in August 2014.

The seasonally adjusted estimate rose 0.4% in October 2014. This follows a rise of 1.3% in September 2014 and a rise of 0.1% in August 2014.

In trend terms, Australian turnover rose 5.0% in October 2014 compared with October 2013.

The following industries rose in trend terms in October 2014: Food retailing (0.4%), Household goods retailing (0.6%), Other retailing (0.4%), Cafes, restaurants and takeaway food services (0.4%), Clothing, footwear and personal accessory retailing (0.5%) and Department stores (0.2%).

The following states and territories rose in trend terms in October 2014: New South Wales (0.7%), Victoria (0.4%), Western Australia (0.3%), South Australia (0.5%) and the Australian Capital Territory (0.8%). Queensland was relatively unchanged (0.0%). The Northern Territory (-0.4%) and Tasmania (-0.1%) fell in trend terms in October 2014.

Key points on trade balance

BALANCE ON GOODS AND SERVICES: In trend terms, the balance on goods and services was a deficit of $1,547m in October 2014, a decrease of $82m (5%) on the deficit in September 2014. In seasonally adjusted terms, the balance on goods and services was a deficit of $1,323m in October 2014, a decrease of $912m (41%) on the deficit in September 2014.

CREDITS (EXPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services credits rose $409m (2%) to $26,904m. Non-rural goods rose $700m (4%). Non-monetary gold fell $204m (13%), rural goods fell $115m (4%) and net exports of goods under merchanting fell $7m (70%). Services credits rose $35m (1%).

DEBITS (IMPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services debits fell $503m (2%) to $28,227m. Intermediate and other merchandise goods fell $371m (4%), consumption goods fell $95m (1%), capital goods fell $43m (1%) and non-monetary gold fell $34m (9%). Services debits rose $39m (1%).

AUD/USD offering a fading opportunity on a spike?

AUD/USD is trading at 0.8422, up 0.21% on the day, having posted a daily high at 0.8431 and low at 0.8386.
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