Consumer Confidence on the Rise: AUD/USD Higher
The AUD/USD has started to put in a short-term bottom and the latest economic data appears to be bullish for now.
Westpac consumer confidence has shown an uptick of 1%, which is better than the previous reading of -3%.
While this is by no means a major number, it does bode well for the AUD/USD. The note that came out with the number, suggested the short-term negative news is now out the way and there are some positive signs in the economy.
We are also seeing a bit of a recovery in the mining states, lead by strong commodity prices and that has a big impact given the number of listed miners featured in the ASX.
Aussie Outlook
The AUD/USD had fallen sharply but bounced from just above the major level at 0.7000. We saw buying come in around 0.7050 and although price didn’t test the round number, many are suggesting it is only a matter of time.
The bounce is also clearly due to the fact that the USD buying has slowed as the 10-year yield appears to have calmed back down for the time being.
If we can push to 0.7200, then I would be taking that opportunity to start looking for further short positions.
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