Aussie weighed down by fundamental data

The Australian dollar retreated against its US dollar on Thursday after retail sales data from the outback nation disappointed.

Retail sales fell 0.1% in July after rising a revised 0.6% in June; Australian Bureau of Statistics (ABS) data showed on Thursday, however, the market forecast was for a 0.4% rise in sales in July.

Moreover, Australia's trade balance has deteriorated lately as the nation runs some pretty large trade deficits as a result of the big falls in commodity prices. Coming in with a deficit of $2.46 billion the trade deficit was much better than the market forecast of a deficit of $3.1 billion.

Retail data came just one day after the ABS reported GDP growth figures for last quarter, which showed the economy growing a mere 0.2% over the April-June period, weaker than the forecast expansion of 0.4%.

Yesterday's data raised some speculation that the RBA might consider lowering interest rates again, and today's data is likely to add to the case for further easing.