AUDUSD is trending down

The Australian dollar reaction to this mornings retail sales report was interesting as the move back into negative territory (see economic calendar below) may suggest the Australian economy (households) are feeling the impact of the current restrictive monetary policy. Although one data point does not make a trend, if these spending habits continue to decline, the Reserve Bank of Australia (RBA) fight against lower inflation may follow. The RBA’s Governor Bullock portrayed or more uncertain and cautious message in her statements shown below:
“We're in a period where we have to be a bit careful.”
“I want to avoid imposing too much and pushing up the jobless.”
“We need to ensure that inflation expectations stay anchored.”
“Monetary policy is restrictive and is dampening demand.”
The PBoC’s Governor Pan on the other may have aided the pro-growth AUD by stating that monetary policy will remain accommodative.
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