The euro remained range-bound against the Aussie yesterday following the release of better-than-anticipated economic data from both countries. While Australian retail sales beat estimates in November, Italian retail sales unexpectedly surged in the same period. Overall, the EUR/AUD pair remained range-bound between 1.5520 and 1.5610 in the past 24 hours.
According to the data published by the Australian Bureau of Statistics (ABS), the country’s consumer price index rose by 7.30% y-o-y in November, following a 6.9% rise in the previous month and a notch higher than the 7.20% increase anticipated by economists.
Housing prices grew by 9.60% y-o-y in November. Likewise, food and non-alcoholic beverages surged by 9.40%. Also, the transport sector recorded an increase of 9%. While furniture, household equipment, and services jumped by 8.40%, recreation and culture rose by 5.80%. New dwelling prices increased 17.90% y-o-y in November, compared with a surge of 2040% in the previous month.
The increase in the consumer price index was mainly due to a 7.30% y-o-y rise in the prices of meals and takeaway foods. Notably, automotive fuel prices skyrocketed by 16.6% in the twelve months that ended November, an increase from 11.8% in October.
In a separate news release, the ABS stated that the country’s retail sales rose by 1.40% m-o-m in November, following a 0.40% rise in the prior month and more than twice the forecast of 0.60% growth.
On a y-o-y basis, Australia’s retail sales surged 7.70% in November 2022.
Food retailing inched up 0.10% m-o-m in November. Likewise, household goods retailing increased by 2.10%. While clothing, footwear, and personal accessory retailing rose by 6.4%, department stores increased by 5.4%.
The cumulative online retailing sales were A$4.015 billion in November 2022,
According to the data published by the Italian National Institute of Statistics, the country’s retail sales rose by 0.80% m-o-m in November, following a decline of 0.30% in October, which pleased economists’ who were expecting the retail sales to drop by another 0.30% in the reported period. Notably, the volume of retail sales grew by 0.40% in November.
On a y-o-y basis, the value of retail sales increased by 4.40% in November 2022. The reading reflects the 21st successive month of growth. Also, the retail volume declined by 3.60%.
Large-scale distribution surged 7% y-o-y in November 2022. Similarly, small-scale distribution grew by 1.80% in the same period. Non-store retail sales increased by 1.20%. However, electric household appliances and audio-video equipment posted a decline of 2.30%. Online sales surged 4.70% y-o-y in November 2022.
The solid economic data from both Australia and Europe is expected to keep the EUR/AUD pair range-bound in the short term.
The historical price chart indicates that the EUR/AUD pair is rising after testing the support at 1.5420. The next resistance is anticipated only near 1.5870. Additionally, the currency pair is trading above its 50-day moving average while the stochastic indicator is in the bullish zone. Therefore, we anticipate the EUR/AUD pair to remain in an uptrend in the forthcoming trading sessions.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
