Australian Dollar remains subdued despite improved Westpac Consumer Confidence
The Australian Dollar (AUD) extends its losses for the second consecutive session on Tuesday. The AUD/USD pair depreciates despite an improved Westpac Consumer Confidence, which surged 5.7% in August to 98.5, following a 0.6% increase in July. The sentiment has reached a high since February 2022, as the Reserve Bank of Australia (RBA) has delivered rate cuts totaling 75 basis points since January.
Matthew Hassan, Head of Australian Macro-Forecasting, said the prolonged period of consumer pessimism may be coming to an end, although maintaining momentum could require additional easing. However, he emphasized that policymakers are under no immediate pressure to deliver further cuts.
The AUD/USD pair depreciates as the US Dollar (USD) continues to improve amid geopolitical developments. US President Donald Trump would begin the preparation steps for a trilateral meeting between Russian President Vladimir Putin, Ukrainian President Volodymyr Zelenskyy, and himself at some point soon. Trump also said that Putin agreed to accept security guarantees, and there is a need to discuss possible territory exchanges.
Source: FXstreet
