The AUD/USD is Falling: Consumer Confidence Falls Off a Cliff
Rowan Crosby • 1 min read
The AUD/USD has had a slow start to the Asian session and is in the red once again.
The key headline locally has been that Westpac Consumer Confidence for March has taken a sharp fall. The number fell to -4.8% vs the prior month’s reading of +4.3%.
This comes on the back of some poor results yesterday for business confidence. Each of these numbers are not particularly important in and of themselves, but stacked on top of each other they are clearly important.
The move is heightened by the fact that the RBA is under increasing pressure to cut rates as the major data points such as GDP and CPI continue to weigh heavily.
Given that there are Brexit dramas weighing on risk assets, the weakness today might only intensify.
The AUD/USD fell all the way from 0.7200 and through 0.7050 to test the lows of 0.7000 before staging a bit of a recovery.
Yesterday we were eyeing off the 0.7100 level as one that would be quite major and sure enough, that is where price got to before falling.
Key support will clearly be at 0.7000 and if the sentiment remains poor we are looking at a test rather soon.