The Australian Dollar updated its highs and then reversed. Overview for 17.01.2018

The AUD/USD pair is being corrected on Wednesday morning after testing September highs.

On Wednesday, the Australian Dollar is retreating against the USD. The current quote for the instrument is 0.7944.

Today’s statistics showed that the Westpac Consumer Sentiment in Australia added only 1.8% in January after expanding by 3.6% the month before. This is a leading indicator, which is expected to show readiness of the country’s population to spend money and buy goods. Over the last couple of months, the indicator had been rising and that was good for the Aussie.

However, if one takes a look at the indicator movement over the last 10-12 months, one can see that it has been quite unstable. Over this period of time, no rising trend lasted more than three months in a row as consumer activity fell significantly, although later they were back to buying.

It means that the stable labor market and good economic outlooks aren’t enough for consumers to feel comfortable and protected. In such circumstances, the Retail Sales and the Industrial Production numbers are efficient, but they are expanding too slowly and can’t keep up with consumers’ priorities.

Apart from the technical correction, the Aussie’s decline is being supported by the USD recovery.

RoboForex Analytical Department