On Wednesday morning, the AUD/USD pair stopped its fast growth after some controversial statistics.
The Australian Dollar was rising for two consecutive days, and today’s session was opened with strengthening as well. However, this positive impulse didn’t last long: the Aussie retreated as soon as unequal statistics on Australia was published. The current quote for the pair is 0.7677 and it’s still very close to the instrument’s local highs.
According to the data published today, the Australian consumer confidence index from Westpac decreased in April up to -4 points against the predicted number of 2.2 points. On markets, they even started talking about a possible statistical error earlier, which may distort the current number. However, this is hardly true: an inappreciably small increase of consumer spendings since the beginning of 2016 was based on the neutral data from the labour market. In January, the unemployment rate was 6%, in February it decreased up to 5.8%. It’s been a year since the indicators was below 5.8%, although it wouldn’t be a problem for Australia to reduce tension on the employment market in more satisfactory financial conditions.
Companies and the population may be alert about global perspectives, and this is sure to affect short-time observations. Considering that reports from Westpac are usually “alive”, meaning that they are written based on answers of those surveyed (continuous sampling method), so the indicator is quite reliable.
The current strengthening of the Australian Dollar, which occurred down to recent hours, is not very good for local exporters and the Central Bank. More than once the RBA said that the Aussie is overbought and should cost less. However, it’s unlikely that at this precise point in time the local currency appreciation may force the RBA to decrease the interest rate, but this factor is surely to be taken into account later.
RoboForex Analytical Department
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