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Australian Retail Sales & Building Approvals both lower than expected


05 February 2008

Australian Retail Sales and Buidling Approvals for December 2007 were both released today lower than generally expected.

Retail Sales (DEC)    +0.5%    Consensus +0.6%

Building Approvals (DEC)    -16.0%    Consenus -4.0%)

The Australian Dollar is slightly lower in immediate response.

The keenly awaited RBA interest rate decision will be released at 2.30 AEST today. A 25 bps rate increase is widely expected. The accompanying statement will be closely examined to determine the probaility of further rate hikes.


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