Aussie retail sales preview - Westpac

Analysts at Westpac offered their preview of this week's key data for the Aussie.

Key Quotes:

"Retail sales came in well below expectations in Aug recording a 0.6% contraction with Jul’s flat result revised down to a 0.2% dip. Annual growth slowed to 2.1%, the weakest pace since June 2013. The 0.8% contraction over Jul-Aug is the largest 2mth decline since October 2010, near the tail-end of the RBA's 2009-10 tightening cycle."

"Consumer sentiment lifted in Sep-Oct, although pressures on family finances remained evident. Some drags, from higher mortgage rates and electricity prices, likely eased a touch and job gains remain strong but weak wages growth and concerns about potential rate increases and slowing housing markets are still clear negatives. Retailers are bearing the brunt of the spending slowdown and engaged in aggressive price discounting at the same time. We expect a better but still weak 0.3% gain for Sep."