By CountingPips.com
US retail sales increased by slightly more than expected in August and advanced by the largest amount in five months. The advance estimate of the US monthly retail sales, released by the US Commerce Department, showed that sales increased by 0.4 percent to $363.7 billion in August from July. The data came in just above market expectations that were predicting a
On an annual basis, the retail sales data increased by 3.6 percent above the August 2009 sales level. Core retail sales, excluding automobiles, jumped by 0.6 percent in August following a 0.1 percent increase in July and surpassed economic forecasts that were expecting core sales to rise by 0.3 percent.
Contributing to the higher sales level for August was a rise in gasoline station sales with a 1.9 percent increase while food and beverage stores, clothing and accessories stores and sporting goods, hobby, book and music stores also had higher levels for the month.
US Dollar lower in Forex Markets, Stocks slightly higher, Gold at new record high
The US dollar has been on the defensive today in the forex markets against the other major currencies after the US retail sales release. The American currency has lost ground today versus the euro, British pound sterling, Swiss franc, Australian dollar, New Zealand dollar, Japanese yen and the Canadian dollar.
The American currency today fell to a fresh 15-year low against the Japanese yen as the Prime Minister of Japan Naoto Kan prevailed in a leadership challenge election which sparked yen strength. The 15-year USD/JPY low was recorded at the 82.92 exchange rate earlier today before pulling back some and trading right around the 83.05 level, according to currency data from Oanda. There is speculation that the reelection of the Prime Minister will make possible government intervention to weaken the yen less likely.
The U.S. stock markets, meanwhile, have been mixed today with the Dow Jones decreasing by over 15 points, the Nasdaq up by approximately 4 points and the S&P 500 is lower by less than a point at the end of the U.S. trading session. Oil has edged lower by $0.39 to the $76.80 level.
Gold has been surging today and has jumped by almost $30 per ounce to set a new record high. Gold is currently up by $24.60 to stand at the $1,269.70 per ounce level after touching $1276.50 per ounce earlier in the day which was $10 higher than the previous record that was recorded in June.