The Australian dollar was rather soft during the Wednesday’s trading session despite positive news from Australia. The currency attempted to rally against the euro but pared most of its gains as of now.
The Westpac-Melbourne Institute Consumer Sentiment showed an improvement by 6.4 percent in May. The report noted that the latest interest rate cut one of the major contributors to the increase. As for the future, Westpac’s Chief Economist, Bill Evans said:
The minutes from the May board meeting highlight that the Bank is relying on an ongoing boost to household expenditure to encourage businesses to invest and employ setting the economy onto a path of a falling unemployment rate and above trend growth in 2016. Such a scenario would be consistent with an extended period of steady interest rates.
Despite the supportive data, the Aussie did not demonstrate a positive reaction to the news.
AUD/USD edged down from 0.7913 to 0.7891 as of 11:43 GMT today. EUR/AUD has dropped from 1.4088 to 1.4014 intraday but bounced to 1.4065 currently.
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