Aussie Reaction to the Retail Sales Report

Australian retail sales fell 1.0 percent in July, a report on Wednesday showed. The average estimate was for a 0.5 percent increase and the market reacted negatively to the unexpected drop.

Another report showed a more than expected decline in home loans. Both reports caused the market to reduce its expectation for higher interest rates by the RBA. The chart below depicts the reaction from the Australian dollar to the news in early Asian markets.