USD Slips as Consumer Confidence Falls in June for Second Month
THE TAKEAWAY: [U.S. consumer confidence falls in June for second month to lowest this year] > [Soft labor market dampens confidence] > [USD weakens]
Consumer confidence in the U.S. declined in July for the second straight month to its lowest level this year. Preliminary monthly readings indicated that the Thomson Reuters / University of Michigan Confidence Index (MCSI) unexpectedly slid to 72.0 in July from 73.2 the previous month. The consensus forecast of 69 economists surveyed by Bloomberg News had called for rise in the sentiment gauge to 73.5.
Sentiment among U.S. consumers declined amid ongoing softness in the labor market and restrained wage growth. Furthermore, consumer credit figures released on Monday showed that credit-card debt had jumped in May, suggesting that Americans were struggling to pay off debts.
AUDUSD 1-minute Chart: July 13, 2012
Chart created using Market Scope – Prepared by Tzu-Wen Chen
In the minutes following data release, the U.S. dollar declined against the Australian dollar by as much 22 pips. At the time of this report was written, the AUDUSD pair had retraced slightly and was trading at $1.0215.
--- Written by Tzu-Wen Chen, DailyFX Research
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