US Consumer Borrowing in April Gains By Least In Six Months
Consumer borrowing in the U.S. rose less than expected in April, as Americans cut back on the use of revolving credit. The Federal Reserve reported today that total credit rose by $6.5 billion in April, the smallest gain in six months, while borrowing in March was revised downwards to $12.4 billion from $21.4 billion originally estimated. The consensus forecast according to a Bloomberg News survey had called for a rise in debt by $11.0 billion.
Non-revolving credit, which includes student loans and loans for motor vehicles and mobile homes, advanced by $10.0 billion in April, the largest rise in three months. On the other hand, revolving debt, which includes credit cards, fell by $3.4 billion as a cooling labor market dampened household confidence and consumer borrowing.
AUDUSD 1-minute Chart: June 7, 2012
Chart created using Market Scope – Prepared by Tzu-Wen Chen
The US Dollar gained ground against all of its major currency counterparts in the minutes following data release. Earlier gains in risk-correlated assets such as the Australian and New Zealand dollars were erased, as risk appetite waned on today’s news. At the time of this report, the greenback continued to trade higher against the Australian dollar, with the AUDUSD pair trading at $0.9917.
--- Written by Tzu-Wen Chen, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.