- Reserve Bank of Australia
In September Australians appeared to be more willing to open their wallets and spend, as the nation's retail sales surged more than expected due to the iPhone 6 release. According to Australian Bureau of Statistics, retail sales soared a seasonally adjusted 1.2% to $23.63 billion, recording the strongest gain since February 2013. Electrical and electronic goods retailing was the main contributor to the increase of the gauge, as it advanced 9.2% in September on the back of release of new Apple's smartphones. Food retailing, clothing and footwear sales, as well as household goods' spending also rose in the reported month, whereas department store sales fell. A separate data also showed Australia's trade gap widened in September due to falling commodity prices. The deficit more than doubled from August to September to $2.3 billion from $1.01 billion. Exports nudged higher a mere 1% to $26.5, whereas imports jumped 6% to $28.7 billion. As widely expected, the RBA kept its interest rates on hold at 2.5% amid slack in the job market, increasing house prices and concerns about China's growth. The cash rate has been at that level since August 2013, and the RBA is unlikely to raise it in the near future. However, the bank changed its language concerning the exchange rate, noting that recent weakness in the Aussie is due to the strengthening Greenback. Still, the local currency is "above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months," the RBA said.
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