Aussie Retail Sales: Big miss fails to move the needle ahead of RBA

December’s Aussie Retail Sales data have been released that were expected to have pulled back from the reopening surge in Oct-Nov. The data has fallen in as follows:

Australian December Retail Sales -4.4% vs +3.9% expected.

''Australian retail sales slid in December as pay back for two months of spectacular gains and a further slowdown was likely this month as a surge in coronavirus cases led to a self-imposed lockdown by many consumers,'' Reuters reported. 

''Sales were still up 4.8% on a year ago and sharply higher for the December quarter as a whole, suggesting household spending made a major contribution to economic growth.''

AUD/USD reaction

The price has not reacted despite the shocking outcome.

AUD/USD Price Analysis: Bulls move in on a critical liquidity zone

Traders await the Reserve Bank of Australia.

The RBA is expected to end its pandemic-related bond-buying program. Market participants speculate policymakers will bring forward rate hikes’ guidance.

Reserve Bank of Australia Preview: A hawkish surprise from Lowe & Co?

About Retail Sales

The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes and it's considered as an indicator of the pace of the Australian economy. It shows the performance of the retail sector over the short and mid-term. Positive economic growth anticipates bullish trends for the AUD, while a low reading is seen as negative or bearish.