Australian retail sales surged in October but Q3 GDP may see a 3% shrinkage, UK retailers reported the biggest price rise since 1990

Australian retail sales rebounded in October by 4.9%, beating the forecast at 2.5%. In September, the growth rate was 1.7%. The strong growth has been supported by holiday shopping and dining. Clothing stores sales gained 28%, department stores 22%, and restaurants 12%. However, analysts and economists forecast that Australia’s Q3 GDP, which is due next week, will probably see a fall at 3%. The strong export performance will offset some of the declines but still not enough. AUDUSD is currently trading at 0.7145, down about 0.58%.

British retailers reported the strongest holiday shopping demand since 2015 and the largest price rise since 1990. Fears of shortages have led shoppers to buy gifts early. GBPUSD is currently trading at 1.3303, down about 0.11%, mostly due to the USD’s strength. Investors are still speculating whether the Bank of England will raise interest rates in its meeting next month.