Consumer Confidence in Australia Wobbles

Australian dollar gdp, aussieThe Australian Dollar moved a tad lower, but largely ignored a number of key economic data releases today. This morning, Australia got a key barometer of consumer confidence from Westpac’s index that showed consumer confidence is not exactly healthy.

The Westpac index on consumer confidence contracted 0.7% on the month in April. The index rose 0.1% the month before. While not a major concern, this data release fits with the already-released indicator from Australia and New Zealand Bank (ANZ). Although that release, from ANZ, showed a monthly gain, that release showed that the underlying trend remains downward.

Waning consumer will be an ongoing concern for the Reserve Bank of Australia (RBA). The central bank is focusing, a lot, on the country’s reliance on it mining sector to a more diversified economy. One with a more consumption base. The Australian dollar was already on the back foot from a weakness in home loans.

The Aussie Dollar is not too concerned with Australia

The Aussie dollar, and other financial instruments in the region, are more focused on rising global tensions. From Syria to North Korea, safe haven assets are getting a boost. Especially spot gold (XAU/USD). There is also a pervasive weakness in the US Dollar, especially against the Japanese yen. The yen is a regional safe haven currency.

Around the release, the AUD/USD was steady around 0.75040. After the consumer confidence hit the news wires, the Aussie hit a low of 0.75020 right after it and then recovered.

David Frank

David Frank

Chief Market Strategist at CupO'Forex
David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.
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