Talking Points:
- The Australian Dollar showed tepid reaction towards the US Dollar
- Chinese Consumer Sentiment reaches highest level since May 2014
- Aussie movement may be due to a correction from a three week low
The Australian Dollar did not show an outsized response to the MNI September Consumer Sentiment Indicator for China. The barometer rose 1.5 percent in September to 118.2. This is the highest level since May 2014. It is important to note that the Aussie was already correcting against the US Dollar after hitting a three week low. Though this gauge did not have an immediate impact, it may help encourage intraday corrective flows.
The current state of Chinese consumers appears upbeat. The report cited that households responded positively to the rate cut in August, the change in the Yuan fixing mechanism and a reform in state-owned enterprises. Four out of the five components of this figure increased. The only factor to decline was expected personal finances and by 1.8 percent.
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