Forex News: Aussie Unchanged as Consumers Increased Credit Purchases
THE TAKEAWAY: Australian credit card transactions increased to $A22.5B > Consumer confidence in Australia declined while recent wage earnings contracted > AUDUSD little changed
The Australian Dollar was little changed as consumers purchased $A22.5 billion on their credit cards in October which was an increase from September at $A19.5 billion. Moreover, the Westpac Bank released their consumer confidence figures that showed a 4.1 percent decrease in December. These two releases appear conflicting as increasing credit transactions may imply that consumers are increasingly confident that they can earn higher incomes to cover the cost of financing. However, when taking a closer look at the most recent wage data, workers’ earning actually contracted in the third quarter which may suggest consumers are using credit to make up for lost wages.
In Japan, machine orders showed modest gains in October at a 2.6 percent increase while domestic corporate goods prices decreased 0.9 percent in November, year-over-year.
Forex traders are likely to remain on the sidelines and wait for guidance from the Federal Reserve when trading the Australian Dollar versus the U.S. Dollar as the higher yielding currency may be affected by a large shift in risk trends if FED policy offers a big surprise. The Fed meeting is scheduled later today at 17:30 GMT.
AUD/USD, Weekly Chart
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