Australian Consumer and Business confidence improves but AUDUSD in wait and see mode
This morning saw the release of Australian Business and Consumer Confidence data, framed against surging prices and a fourth consecutive 50bp rate hike from the RBA last week.
Share this:
This morning saw the release of Australian Business and Consumer Confidence data, framed against surging prices and a fourth consecutive 50bp rate hike from the RBA last week.
Extending its rebound from the June low of 1 point, the NAB Business confidence index rose by 2 points (in August) to 10 points. Current business conditions edged 1 point higher to 20. New orders and trading activity also ticked higher while Input and Final prices eased slightly, albeit from very elevated levels.
NAB Group Chief Economist Alan Oster said, “We continue to expect that inflation and rising interest rates will eventually begin to weigh on the household budget. So far, however, it appears this dynamic is yet to take hold.”
Ending a run of nine consecutive falls, the Westpac-Melbourne Institute of Consumer Sentiment lifted by 3.9% in September to 84.4, although it remains in recessionary territory.
Within the details, a broad-based improvement in expectations was noted, likely helped by lower petrol prices, a strong labour market, and the shock value of the aggressive RBA rate hikes wearing off.
In this case, the RBA will need to continue tightening further into restrictive territory if they wish to tame spiralling inflation and a tight labour market. The release of labour force data on Thursday is expected to show the unemployment rate remained at a 50-year low of 3.4% in August.
The AUDUSD is currently trading near .6870, consolidating its rebound from ahead of the June .6681 low following stronger China loan growth data on Friday and as the U.S dollar eased ahead of the release of inflation data tonight in the U.S.
After clearing resistance .6870/50 and assuming no nasty shocks are revealed in tonight’s inflation data, the AUDUSD looks set to make further gains towards the .6950 area.
Source Tradingview. The figures stated are as of September 13th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
This content will only appear on Forex websites!
This morning saw the release of Australian Business and Consumer Confidence data, framed against surging prices and a fourth consecutive 50bp rate hike from the RBA last week.
Extending its rebound from the June low of 1 point, the NAB Business confidence index rose by 2 points (in August) to 10 points. Current business conditions edged 1 point higher to 20. New orders and trading activity also ticked higher while Input and Final prices eased slightly, albeit from very elevated levels.
NAB Group Chief Economist Alan Oster said, “We continue to expect that inflation and rising interest rates will eventually begin to weigh on the household budget. So far, however, it appears this dynamic is yet to take hold.”
Ending a run of nine consecutive falls, the Westpac-Melbourne Institute of Consumer Sentiment lifted by 3.9% in September to 84.4, although it remains in recessionary territory.
Within the details, a broad-based improvement in expectations was noted, likely helped by lower petrol prices, a strong labour market, and the shock value of the aggressive RBA rate hikes wearing off.
In this case, the RBA will need to continue tightening further into restrictive territory if they wish to tame spiralling inflation and a tight labour market. The release of labour force data on Thursday is expected to show the unemployment rate remained at a 50-year low of 3.4% in August.
The AUDUSD is currently trading near .6870, consolidating its rebound from ahead of the June .6681 low following stronger China loan growth data on Friday and as the U.S dollar eased ahead of the release of inflation data tonight in the U.S.
After clearing resistance .6870/50 and assuming no nasty shocks are revealed in tonight’s inflation data, the AUDUSD looks set to make further gains towards the .6950 area.
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD reversal risk builds as central bank showdown looms
USD/CAD has delivered a bullish reversal signal from established support, just as traders prepare for Fed and BoC decisions. Aggressive Canadian rate hike expectations and conflicting momentum signals make the coming session important.
EUR/USD weekly outlook: FOMC and ECB to set the tone
The current backdrop is modestly bearish. On Friday, the EUR/USD closed modestly lower, down for the third consecutive day. The pair also posted a weekly decline after staging a modest recovery attempt in the previous week. Out of the past 8 weeks, the EUR/USD has fallen on 6 occasions. There is not much supporting factors for the single currency right now. So, the upside remains capped.
USD/JPY Forecast: Is Rising Japanese Inflation Supporting the Yen?
As the trading week comes to an end, one of the most relevant developments in the FX market has been the renewed strength of the Japanese yen. This can be seen in the recent performance of USD/JPY, which has fallen nearly 1.0% over the last two trading sessions, highlighting a meaningful recovery in the Japanese currency against the U.S. dollar.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.