China Retail Sales Miss Expectations in May, Weighing on AUD

Data from China's National Bureau of Statistics showed retail sales contracted 0.6% year-over-year in May, well below the 0% expected and the prior month's 0.2% increase.

The weaker-than-expected reading adds to concerns about slowing domestic demand in China, a key export market for Australia. The Australian dollar (AUD) often reacts to Chinese economic data due to the strong correlation between Australian exports and Chinese consumption.

Traders are now watching for further Chinese stimulus measures as the underperformance in retail could sour risk sentiment and weigh on commodity-linked currencies like the AUD.