Australia retail sales rises 0.4% in January
Retail sales data for the month of January showed a 0.4% increase, matching economists' expectations, and data from the Australian Bureau of Statistics showed earlier today confirmed the same. The gain of 0.4% in January reverses the 0.1% decline that was posted in December last year. The Australian dollar was largely muted to the data and was seen giving up the intraday gains made on the back of the retail sales data, which saw the Australian dollar rise towards 07595.
The retail sales data rose on the account of a 1.4% increase in household goods, followed by a 1.1% increase in cafes, restaurants and food services
The retail sales data rose on the account of a 1.4% increase in household goods, followed by a 1.1% increase in cafes, restaurants and food services. Food retail and other retail sectors posted gains of 0.2% and 0.1% respectively, contributing to the 0.4% month over month increase.
On the flipside, offsetting some of these gains was a decline in clothing and apparel, which fell 0.4% and sales at department stores were down 0.5%. Online retail sales continued to be the biggest contributor, rising to a total of 3.6%.
Australia's retail sales figures today come ahead of the RBA's rate decision due tomorrow and before that, the U.S. factory orders figures will be coming out later this evening.
The U.S. dollar got a breath of fresh air last week as the Fed Chair Janet Yellen, along with several other FOMC members spoke in favor of hiking interest rates, pointing to a March rate hike as almost a done deal. As a result, AUDUSD could be seen to be trading volatile in the near term.
How we trade binary?
On the intraday charts, AUDUSD remains biased to the downside and could be seen trading sideways near 0.7584 and 0.7638 levels of support and resistance. Therefore, CALL options are recommended near 0.7600 where we expect to see AUDUSD post a reversal in the short term towards 0.7638. Thus look to purchase daily CALL options near 0.7600, targeting 0.7638 for a 21:00 GMT expiry time.
Target price: 0.7600
Expiry: 21:00 GMT