The Australian Dollar has declined against the majority of its competitors after fears that the South Pacific nation’s economy is showing increasing signs of weakness were boosted by disappointing consumer confidence figures.
Despite the country’s declining unemployment rate and the Reserve Bank of Australia’s recent interest rate cuts the Australian public are still fretting about their household finances to almost the same extent as they were before.
A private Westpac Banking Corp consumer confidence survey revealed that in January sentiment rose by just 0.6 per cent. This month’s reading of 100.6 is barely over the 100 mark which indicates that optimists outnumber pessimists among the survey participants.
The very slight improvement in sentiment also fails to reflect the recent positive developments in China, as well as dampening the success of any progress at home.
Westpac’s chief economist commented that: ‘Clearly these positive news events have failed to move respondents. Respondents have become more guarded around their own finances.’ Bill Evans continued: ‘The case for a further rate cut as early as the February meeting is still reasonable. However, a prudent Reserve Bank which has seen a resurgence in terms of trade, is likely to defer in February and await further evidence around the impact of the rate cuts. Accordingly we have opted for the next cut in the March end of our forecast.’
As of 10:00 am
The Pound to Euro exchange rate is currently trading at 1.2068
The Pound to US Dollar exchange rate is currently trading at 1.6026
The Pound to Australian Dollar exchange rate is currently trading at 1.5204
The Euro to US Dollar exchange rate is currently trading at 1.3276
The Euro to Pound exchange rate is currently trading at 0.8286
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