Australian Consumer Confidence Rises, AUD/USD Follows
- Australianconsumer confidence rises 4.7 percent
- Release likely reinforces yesterday’s data on improved business sentiment
- Stronger domestic and regional growth potentials could lead investors to reduce expectations for near-term Reserve Bank of Australia rate cuts, AUD/USD Higher
The Aussie traded higher against its US counterpart as Westpac Bank reported improved Australian consumer confidence for the month of September. The index rose to 110.6 from 105.7, representing a 4.7 percent change month-over-month. Higher consumer confidence likely reinforces yesterday’s business sentiment data and could lead to more consumption of goods and services that drive the Australian economy. Furthermore, recent Chinese data hinting at stabilization could drive demand for commodities and boost Australian exporters. Stronger growth potentials could lead investors to reduce further their expectations for the Reserve Bank of Australia to lower rates and move AUD/USD higher.
AUD/USD (5-Minute Chart)
Source: FXCM Marketscope
Jimmy Yang, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.