FxPro Review: Despite Weak Retail Sales, Inflation in Australia Continues to Rise


FxPro Commentary: Despite weak retail sales, inflation in Australia continues to worsen.

Consumer inflation in Australia rose in April, countering the expected downward trend. Prices increased by 3.6% year-on-year, up from 3.5%, while the average expectation was a decrease to 3.4%.

FxPro Senior Analyst Alex Kuptsikevich noted: Inflation stabilized at the end of last year, dropping to 3.4%, but has been rising over the past two months. Prices have increased in 10 of the past 12 months. The consecutive rate hikes over the past four months have dispelled concerns about imminent rate cuts.

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From the reaction of the foreign exchange market, traders were not prepared for the policy tightening. As the price attempts to break through 0.6650, the Australian dollar faces stronger selling pressure against the U.S. dollar. The recent rise in industrial metal prices and the trade recovery with China present interesting trends.

If the AUD can break through the multi-month resistance level of 0.6650, it will open up a path to 0.6800, a key level over the past 12 months. The current weakness in the foreign exchange market, combined with potentially bullish data, is also contributing to domestic pressure.

However, from a bearish perspective, retail sales remain weak, with retail sales rising 0.1% month-on-month in April and 1.3% year-on-year.

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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Inflation refers to the phenomenon where the purchasing power of a country's (or region's) currency decreases, leading to a general rise in the prices of goods and services. It is reflected in the fact that, over a certain period, the same amount of money can only buy fewer goods and services.


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