The Australian dollar has fallen Monday and is buying 71.86 US cents, down from 72.37 on Friday.

The dollar had hit a monthly high of 72.58 US cents in the week’s final session.

On Friday, the Australian dollar has slipped off a one-month high after subdued retail sales suggested third-quarter economic growth could disappoint.

The Australian dollar fell 0.1 per cent to 71.96 US cents on Friday morning after data showed September retail sales rose a mere 0.2 per cent, lagging expectations for a 0.3 per cent increase.

Adjusted for inflation, sales grew just 0.2 per cent for the whole of third quarter, the weakest growth in 1-1/2 years, having slipped from 1.2 per cent growth in the prior quarter.

“The data does suggest that the household sector will only make a relatively small contribution to Q3 GDP figures,” Kristina Clifton, senior economist at Commonwealth Bank told Reuters over the phone.

Third-quarter gross domestic product (GDP) data is due to be released in early December.

“Hopefully we will see a stronger (retail) performance next quarter,” she added.

“But if we don’t it might suggest that falling housing prices is starting to weigh on consumer spending.

“We need to see a few more low figures before making that assessment.”

Despite Friday’s losses in the Aussie, the currency is up 1.6 per cent on the week so far and is on track for its best weekly showing since September 21.

The gains almost entirely came overnight helped by some shortcovering and a strong rally in risk assets globally on signs that a trade war between China and United States could be contained.

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