The Australian dollar has paused its decline against the US dollar. The current AUDUSD exchange rate stands at 0.6500.
Following the Reserve Bank of Australia's meeting, the AUD experienced a slight uptick, but this did not alter the overall picture: the quotes are hovering near eleven-week lows.
The interest rate remains at 4.35% per annum, as expected. In its comments, the RBA warned that further interest rate hikes cannot be ruled out as inflation remains persistently high.
Australian retail sales in Q4 2023 appeared weak, with a mere 0.1% increase, marking the slowest growth since Q3 2021.
Sales volume declined by 0.1% y/y, reflecting a feeble result. The last time these indices appeared so unimpressive was during the pandemic. The likely reason is the absence of price growth for certain retail goods. Consumers benefited from discounts on furniture and electronics.