Overnight the Australian Dollar to US Dollar (AUD/USD) exchange rate was trending in a narrow range following the release of Australian sentiment data.
The nation’s Westpac Consumer Confidence Index may have remained below the 100 level separating pessimism from optimism, but the monthly increase of 1.9% in November did see the measure climb from 94.8 to 96.6.
While the result was an improvement, Westpac economist Bill Evans offered this rather dispiriting assessment of the situation; ‘This is an unsurprising but still disappointing result. The index is 12.5% below its level of a year ago and 3.6% below its level before the lead-up to the Commonwealth budget in May. In fact, we have now seen nine consecutive months where pessimists have outnumbered optimists. That is the longest run […] since the global financial crisis, and before that, the recession of the 1990s.’
The Australian Dollar to US Dollar exchange rate was little changed after Australia’s Wage Cost Index rose by 0.6% in the third quarter, quarter-on-quarter.
The increase was in line with expectations.
While today’s US Wholesales Inventories report could have a modest impact on Australian Dollar to US Dollar trading, investors are more likely to focus on the upcoming publication of Australia’s Consumer Inflation Expectation report. A speech to be given by the Reserve Bank of Australia’s Christopher Kent will also be of interest.
Of course, US Advance Retail Sales figures may be responsible for notable AUD/USD movement before the close of the week.
The Australian Dollar to US Dollar (AUD/USD) exchange rate achieved a high of 0.8727.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate rallied by over 0.7% on Wednesday as investors ditched the Pound in response to a pessimistic inflation report from the Bank of England (BoE).
The BoE’s decision to cut both its growth and inflation expectations for the UK saw investors push pack their interest rate hike forecasts to towards the end of 2015.
During the European session the Pound consequently declined against almost all of its most-traded currency counterparts.
The British asset had strengthened earlier in the day after the UK’s average wage report showed better-than-expected earnings growth.
However, with additional influential UK reports in short supply for the rest of the week, the AUD/GBP exchange rate may well continue trading in its more elevated position.
That being said, investors will be taking a modest interest in the UK’s House Price Balance and Construction Output figures.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5499.
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