Australian dollar slides on weak retail sales

The Australian dollar was the worst performer in Asia on Friday, tumbling nearly 0.9% after data showed that retail sales unexpectedly fell in June.

The reading points to slower consumer spending amid pressure from high inflation and interest rates. But it could also herald a coming slowdown in consumer inflation.

This puts less pressure on the Reserve Bank to hike interest rates, with the RBA widely expected to keep rates on hold next week. A pause in the RBA’s rate hike cycle diminishes the outlook for the Australian dollar.