Aussie Dollar Down As Retail Sales Fall

Aussie Dollar Down As Retail Sales Fall

The Australian dollar was weaker today following news of weaker than expected retail sales in April, which has lead to forecasts of an interest rate cut. According to the Australian Bureau of Statistics, retail sales fell 0.2% to a seasonally adjusted A$21.2 billion, the first decline since June. Economists had expected a rise of 0.2%.

Elsewhere Prime Minister Julia Gillard has said that Australia’s mining industry is the “strong right arm” of the economy, supporting hundreds of thousands of jobs and the sector would benefit in coming years. Speaking at a mining industry gathering in Canberra she said, “Few nations turn natural resources into national wealth as well as Australia does.” Ms Gillard said that her government, which is facing the repercussions of a softening global economy, wanted growth in the economy and for the benefits of growth and the mining boom to spread to all. She said Australians were rightly proud of the nation's mining industry and that her government will do its upmost to ensure the success of the resources sector.