Australia Retail Sales Surge on Discounts, Switch 2

Australian retail sales rose by 1.2% in June 2025, the largest monthly increase since March 2022, driven by end-of-financial-year discounts and the launch of Nintendo's Switch 2. Discretionary sectors such as electronics, furniture, and clothing saw the biggest gains. Despite the strong monthly result, second quarter sales volumes remained subdued, indicating continued consumer caution. Market expectations for a Reserve Bank of Australia rate cut next month were unchanged by the data. This marks the final retail sales report from the Australian Bureau of Statistics, which will transition to reporting under the broader Monthly Household Spending Indicator. The Australian dollar experienced modest gains following the release.