Last night the US had some rather important consumer sentiment data that was released. This was the latest monthly reading of consumer confidence. Typically the release is based on a representative sample of thousands of mail-in surveys, these results are the largest Consumer Confidence indicators that are generally linked with consumer spending. For example, when consumer confidence is on the rise consumer expenditure tends to increase. Little or declining consumer confidence in contrast is characteristically connected with decreased expenditure and consumer demand. The release tends to be subject to particular timing variables which can result in skewed results.
The consumer confidence figures last night came in at a positive for the US at a figure of 85.2 from expectations of 83.5. This was a huge result given that last month’s result stood at 82.2. After this latest release, investors found the AUD 0.3% lower in value and the USD continued to strengthen throughout the night. The AUDUSD currently stands at almost 0.6% less than the previous night’s figure.
Tonight we will see the release of another much anticipated result, again from the US. This release is the Gross Domestic Product (GDP) figures. Typically these figures show the health of an economy and the more growth that a country experiences the healthier the economy tends to be. Economic growth is arguably linked to prosperity of the citizens in the country.
Investors are seeing resistance levels on the high 0.94 AUD/USD. However, there are strong support levels around the 0.92 AUD/USD floor. Investors are expecting that this will create a range for the short term.