The Australian dollar remained weak today even after consumer confidence improved. The negative mood on the Forex market did not allow the currency to profit from the report, which in fact was not that good.
The Westpac Melbourne Institute Index of Consumer Sentiment rose by 0.6 percent in January (to 100.6 from 100.0 in the previous month). That increase, which was not very big, followed the drop by 4.1 percent in December. The report called the result “disappointing” as the big interest rate cuts that the Reserve Bank of Australia was doing did not translate into improving consumer sentiment. The weak domestic fundamentals decreased the attractiveness of the Australian currency.
AUD/USD fell from 1.0562 to 1.0543 as of 13:58 GMT today. AUD/JPY dropped from 93.78 to 92.86 and its intraday low was at 92.44.
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