Daily Flows & Insights – Soft Retail Sales For Australia

Daily Flows

  • As is often the case, a keen ‘A’ rated ADI came to market with bespoke levels to meet end of quarter funding.
  • A term deposit rate of 5.35% for 1 & 2 year were quickly locked in by market participants.
  • NCD margins were elevated to +45 for 3 months as banks were keen bolster up cash reserves before the long weekend.


Soft Retail Sales For Australia

  • In Australia, retail sales increased by 0.2% MoM.
  • This growth was lower than market expectations of 0.3% MoM.
  • The modest rise indicates that consumers were still cautious in their spending due to elevated interest rates.
  • Sales decreased in various sectors including clothing & footwear, cafes, restaurants and takeaway and department stores.
  • If this print had to be categorised in the hike vs no-hike argument, the weak data would have the RBA leaning towards no-hike.
  • Besides outlier events like the Women’s World Cup, retails sales has remained soft for a considerable period.
  • Looking forward there is not much to suggest that this will change for the rest of 2023.
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Curve Team
Jack Pedersen