China’s May retail sales fell 0.6% YoY, missing expectations and weighing on the Australian Dollar amid trade ties.
The Australian Dollar (AUD) extended losses to 0.7060 against the US Dollar (USD) in Asian trading, down 0.16% after China’s disappointing economic data. The decline follows a three-day rally and reflects broader selling pressure on the Aussie pair.
China’s National Bureau of Statistics reported a 0.6% YoY drop in May retail sales, defying forecasts for flat growth after April’s 0.2% rise. Fixed asset investment also contracted sharply at 4.1% YoY, worse than the expected -2% decline. Industrial production, however, beat estimates at 4.5% YoY.
Investors now await the Reserve Bank of Australia’s (RBA) monetary policy decision at 04:30 GMT, with markets pricing in no change to the 4.35% official cash rate. The RBA has raised rates by 25 basis points in each of its three meetings this year to curb inflation.