Australian Consumer Confidence at 6 Year Highs - AUD/USD Slips

TORONTO - May 11, 2016 - PRLog -- Valgard Investments

Australian Consumer Confidence at 6 Year Highs - AUD/USD Slips

The ASX 200 closed slightly higher yesterday as consumer confidence data reported by Westpac saw its highest rise in 6 years.

Analysts had predicted an increase for the May period however the 8.5% increase surprised many commentators. The forecasted 96.4 was eclipsed by the true figures showing a consumer confidence score of 103.2.

The main catalyst for the sentiment was seen as the recent rate cut by the Reserve Bank of Australia last week.

Home loans for March had fallen but again beat forecasts. The month on month figures showed a reduction of home loans by just 0.9% well below analysts' expectations of 1.5%

Despite being positive locally the AUD slipped again against the USD, the AUD is now 1.3% lower over the last five days. The AUD/USD was trading at 0.7503 and opened today at 0.7368.

ASX Close 11^th May 2015:

ASX 200 - 5,434.80 +30.90 (+0.57%)

Australia is heading into elections soon and many believe that the policy changes in the recent budget were a precursor to a campaign by the current leading party. The soft budget was welcomed but since its release the local markets have continued to remain relatively flat as the AUD becomes weaker.

Market Analysts are seeing significant outflows on the local markets and have pointed to the US Equity markets as a major safe haven whilst Australia moves closer to elections and a possible new government.

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