Chris Weston

All eyes will be on November retail sales and building approvals at 11:30. Retail sales will be very interesting; with expectations we will see growth of 0.4%. The RBA will be keen to look at this print and a good number should see the pair rally to around 0.8950, although a blow-out number (+1% or higher) could see 0.9100 being tested through into European trade. Of course on the flip side if we see growth of 0.2% or even a negative print then the AUD/USD could find good selling activity as traders increase bets that rate cuts will be on the cards in Q1. Keep an eye on China's inflation reads at midday and a number above 3% could cause AUD weakness.



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James Marlay

Retail trade figures definitely going to be interesting. The anecdotal reports that came in during the Christmas period sounded strong.

Chris Weston

these are November numbers though James..bit of a lagging indicator

Chris Weston

sure, the market will react, although reaction will come from a print +0.6% or above or 0.1% or below

James Marlay

So will the market react to these numbers or wait to get a gauge on Christmas activity?