The country’s monthly retail turnover figures were damaged by the stage 4 restrictions in Melbourne, pushing trading conditions backwards.
The country’s retail trading condition takes a hit from the August second wave lockdown.
From July to August, trading fell 0.4 percent nationally which is caused by the lockdowns in Victoria as shown by the retail turnover figures from the Australian Bureau of Statistics.
The downturn follows three consecutive months of positive growth in retail turnover in Australia due to the easing of restrictions from the initial national lockdown caused by the coronavirus pandemic.
The result was driven by a 12.6 percent decline in Victoria compared with the previous month says Ben James, director of Quarterly Economy Wide Surveys.
“Victoria saw large falls across all industries except food retailing, as stage 3 and 4 restrictions saw many businesses unable to trade from their physical stores in August,” he said.
The rest of the country experienced a 1.5 percent decline in trading, excluding the southern state.
In yearly figures, August’s result is still a 6.9 percent increase in turnover compared with the corresponding month in 2019.
The ABS noted household goods led the falls, while food retailing experienced minimal decline.
“Clothing, footwear and personal accessory retailing, department stores, and cafes, restaurants and takeaway food services, had large falls,” the ABS said.
In the daily charts of AUD/USD, the pair opened at 0.7167 early morning in Asia session.
The AUD/USD pair fell 0.54% to 0.7112
As what we can see in the plotted support and resistance, the pair is already touching the 0.7112 support level. With the current economic data’s and lockdown restrictions in Australia, there is a possibility that the price will break down from this support in the following days.
As the US dollar is gaining strength and investors treating the greenback as a safe haven once again, the Aussie dollar may dip lower past this support level. The AUD/USD bears are eyeing out on this level to further confirm their short position.
If speculations are confirmed within the day, we may see further loss from AUD and gains from the US dollar.
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