Overnight, US markets remained relatively flat following the release of Federal Reserve meeting minutes which highlighted ongoing concerns about persistent inflation.
This concern, coupled with rising US Treasury yields, contributed to a cautious market sentiment. Bitcoin also dipped to its lowest level since the start of the year. This cautious global backdrop sets the stage for a potentially volatile day on the ASX.
ASX Futures:
ASX futures point to a lower open, suggesting the market is anticipating a negative reaction to the retail sales figures. The predicted 0.5% decline at the open reflects investor apprehension about the potential implications of strong retail sales data for interest rates.
Australian Dollar:
The Australian dollar weakened slightly overnight. This decline could be attributed to global market uncertainty and anticipation of the Australian retail sales data.
US Retail Sales:
While US retail sales data isn’t due today, its future release will be closely watched by Australian investors. The performance of the US consumer market can significantly influence global sentiment and impact the ASX.
Australian Retail Sales:
November retail sales figures are expected to show a significant jump, potentially the largest since February. This surge in consumer spending could be interpreted as a sign of continued inflationary pressure, potentially leading to further interest rate hikes by the RBA.
