Just a quick preview of the retail sales data due tonight in the US
Retails sales (advance) for May
- expected is +1.2%
- prior was flat in April at 0.0% change
Core retail sales (excluding autos and gas ... or cars and petrol if your an Aussie)
- expected is +0.5%
- prior was +0.2%
What's going to impact?
- US auto sales in May rose to an annualised rate of 17.7m vehicles ... the best month in May since July 2005
- The rebound in gasoline prices is also expected to lift retail sales
- Economists are also citing a stronger job market, improved credit access, rising equity & home prices as supportive of consumer spending
A better than expected result should be USD supportive ... but on the other hand if the data disappoints it may well cast further doubt over the potential for Federal Reserve rate hikes this year and see the US dollar decline.
