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09/07/24
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AUD Drifts After Confidence Data Mixed
On Tuesday, the Australian dollar showed little movement this week, and AUD/USD traded at about 0.6638, up 0.02% for the day in the European session. Earlier today, Australia released mixed confidence indicators, while there were no economic releases from the US.
Later today, Federal Reserve Chair Powell will testify before the US Senate banking committee.
Australian confidence indicators were mixed, reflecting the mood of the private sector. In July, the Westpac Consumer Confidence Index dropped by 1.1% after in June gaining strongly by 1.7%.
This was the 5th drop this year as consumers have been suffering due to sticky inflation and high borrowing costs. The index dropped to 82.7, a six-month low, and a rise in economic activity will depend on consumers becoming confident and opening up their purses and wallets.
Business confidence was in better shape, and in June the NAB Business Confidence index rebounded to 4, after May’s revised -2. That was the highest level since Jan. 2023.
The confidence improvement flowed throughout the economy as manufacturing posted increases, as did most industries. Business conditions fell at the same time and employment edged lower, mirroring the easing economy.
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