Data from the Australian National Statistics Office (ABS) released in the Asian session this morning, Friday, showed an increase in Australian retail sales in October by 4.9% on a monthly basis, compared to 1.3% in the September reading, exceeding expectations that indicated a growth of about 2.2%, to increase sales by 5.2% over annual basis.

This remarkable improvement in the retail sector in Australia came after restrictions were eased from Covid 19 in the two largest states (New South Wales and Victoria) in October to support economic activity, as the largest contribution of the retail sector came from the growth of footwear and clothing sales by 28%.

Retail sales growth in October may support GDP growth in the third quarter reading, which is expected to be announced next week, as expectations indicate a decline in growth of 2.5%, but the impact is not expected to be significant given that the restrictions were most severe in The third quarter was reduced in October.

The Reserve Bank of Australia is still of its opinion that it is not expected to raise interest rates this year or even next year.

The Australian dollar ignores the improvement in retail sales and trades lower against the US dollar this morning, Friday, before the opening of the European markets for the closing session of the week by more than 50 points, trading at 0.7140 levels, in a clear trend towards safe havens and an exit from high-risk currencies with fears of the spread of the new African strain of Corona, which Vaccines are likely to be less effective against it, according to the British health authorities, and this is explained by the rise in the yen and the Swiss franc, despite the stability of the US dollar.