Data Weakens, But Australian Dollar Strengthens—What's Going On?
The Australian dollar strengthened against the US dollar on Tuesday, despite weak domestic economic data. The Westpac Consumer Confidence Index fell 1.7% in January to 92.9, its lowest in three months, following a sharp 9.0% decline in December. This decline reflects public concerns about still-high interest rates.
On the employment and spending side, ANZ job advertisements fell 0.5% in December after previously rising 1.5%. Meanwhile, household spending rose 1.0% in November, slower than the 1.4% increase in October. This data suggests consumers remain cautious due to inflationary pressures and high borrowing costs.
However, the Reserve Bank of Australia (RBA) policy outlook remains unclear. RBA Deputy Governor Andrew Hauser said November's inflation was relatively in line with expectations and emphasized that an interest rate cut is not imminent. The market now awaits the quarterly inflation report later this month to determine the RBA's next policy direction. (az)
Source: Newsmaker.id
