Australian Dollar Outlook: AUD/USD Unfazed by Falling Westpac Confidence 2021-01-20 00:00:00 Thomas Westwater, Analyst
Australian Dollar, AUD/USD, Covid, Westpac Consumer Confidence – Talking Points
Asia Pacific trading may see a slight risk-on tone after Wall Street rises
Australia’s Westpac Consumer Confidence gauge fell 4.5% for January
AUD/USD up on USD weakness, Symmetrical Triangle taking shape
The Nasdaq Composite led the charge higher on Tuesday with a 1.53% gain, as Wall Street resumed trading after the extended holiday weekend. All major US indexes closed in the green, with the S&P 500, Dow Jones Industrial Average, and Russell 2000 rising by 0.81%, 0.38%, and 1.32%, respectively. The risk-on session was prompted by strong earnings results, stimulus hopes, and vaccination distribution efforts. Gold moved above the 1840 handle, bolstered by a weak US Dollar.
Aussie ignores soft confidence data
January 20, 2021SharePrint
The Australian dollar is in positive territory in the Wednesday session. AUD/USD is currently trading at 0.7730, up 0.45% on the day.
Consumer Confidence plunges
Australia released Westpac Consumer Confidence earlier in the day, and the numbers were dismal. Consumer confidence fell by 4.5% in January, its first decline since August, when the index recorded back-to-back declines. Unsurprisingly, the report attributed the sharp drop in consumer sentiment to Covid-related factors; namely, Covid outbreaks and border closures. Even with the drop, consumer confidence is comfortably perched at 107.0. This is well above the neutral 100-level, and indicates that consumers remain optimistic about the economy. This could explain why investors didn’t panic over the reading, and the Australian dollar has posted gains on Wednesday despite this poor performance.