Aussie multi-data preview: what to expect in AUD/USD?

By FXStreet FXStreet (Guatemala) – AUD/USD settled into a phase of consolidation after yet another surge higher, but this time to challenge the 0.72 handle. For today, Australia releases retail sales along with the RBA’s quarterly Statement on Monetary Policy (SoMP).

The upside in the Aussie is not quite organic. The greenback is well and truly out of favor across the board amidst growing concerns as the year gets under way that the Fed may not be in a position to continue gradually hiking rates while data beyond the jobs market disappoints. Tomorrow, however, nonfarm payrolls will be released and has the potential to be a big impact event.

Retail sales and SoMP outlook

“Consumer sentiment posted a reasonably solid finish to 2015 and Christmas spending plans were more upbeat than previous years. The tone from private sector business surveys however softened in Dec, though from a high level. Nominal sales are on track for a 1.4% q/q gain in Q4, up from 0.9% in Q3. The detail from the Q4 CPI report points to a 0.5% rise in retail prices, which would see a 0.9% q/q gain in real retail sales. There is some risk around the price-volume split for the quarter …read more

Source:: FX Street