Another slow day with respect to economic data with the only news worthy announcement being Westpac Consumer Sentiment at 9.30am. Consumer sentiment is obviously a leading indicator of the economic health of our local economy and the strength in our retail sector. If consumers are not overly optimistic then it could suggest people are struggling with their mortgages or just generally not optimistic about the economy, their job security and so forth. All of this can impact the Aussie dollar.
Data released yesterday showed a slight improvement in business confidence however businesses within the retail sector are still showing signs of weakness as consumers pocket their wallets and purses in favor of paying off ballooning mortgage payments and if rates continue to rise both internationally and locally then we could see further trouble within the retail sector which will certainly apply downward pressure on the Aussie dollar.
The one shining light for the local economy continues to be commodities with the likes of nickel, copper, zinc and lithium prices all performing very well and with robust fundamentals. Related stocks on the ASX have also been surging.
AUD EXCHANGE RATES:
AUD/USD – 0.7777
AUD/GBP – 0.5888
AUD/EUR – 0.6584
AUD/NZD – 1.0999
AUD/JPY – 87.444
COMMODITIES:
Gold – A$1656/oz
Silver – A$22.01/oz
WTI – US$51.17/barrel
DATA RELEASES TODAY:
AUD – Westpac Consumer Confidence at 9.30am
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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