AUD/USD: Australian Dollar Drifting After Mixed Confidence Data
2025.02.11 07:43
The Australian dollar is showing little movement on Tuesday. In the European session, is trading at 0.6279, up 0.05% on the day.
Australian Business Confidence Jumps, Consumer Confidence Stagnant
Australian confidence indicators were mixed on Tuesday. The climbed 0.1% in February to 92.2 points, which means a majority of the surveyed consumers were pessimistic about economic conditions. The reading bounced back from a 0.7% decline in January but was shy of the forecast of 0.4%. Consumer confidence remains weak as consumers have been squeezed by high inflation and elevated interest rates. The survey noted that consumers have become more confident that the central bank will lower rates.
The National Australia Bank’s (NAB) , which rose 6 points in January to +4. However, the business conditions index dropped to +3 from +6 a month earlier, as profitability and weakened. The NAB survey noted that retail spending has improved and this trend would need to continue if business conditions were to improve.
The mixed confidence numbers come just one week before a crucial Reserve Bank of Australia . A rate cut is virtually certain at the meeting, which would mark the RBA’s first rate cut since Nov. 2020. The RBA is yet to join the easing cycle which other major central banks have implemented as inflation has fallen.
The is widely expected to continue to maintain at the March meeting. The US economy remains robust and the labor market has slowed gradually, which means there isn’t much pressure on Fed policymakers to lower rates in the coming months. Barring unexpected economic news, the Fed is expected to cut rates no more than one or two times in 2025.
AUD/USD Technical
- AUD/USD tested support at 0.6267 earlier. Below, there is support at 0.6245.
- There is resistance at 0.6299 and 0.6321.
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