The Aussie traded sharply lower against the U.S. Dollar today after the release of the Westpac Consumer Sentiment Index, which came out printing at -4.6% versus a previous reading of +3.8%. The index showed Australian consumers were less likely to increase purchases, consequently weakening the Australian economy.
The Australian Dollar was off -0.72 percent against the Greenback in Asia midsession. The rate broke through its 200-day moving average for the first time in five months after the release of the consumer sentiment data. Nevertheless, the prospect of higher U.S. rates had a large part in the currency’s decline.
Technical: AUD/USD could target 0.90 soon – Elliott Wave Analysis
With increasingly positive U.S. economic data, the likelihood of the Fed increasing U.S. interest rates has increased from 52 percent at the beginning of the month to 59 percent currently. Initial Jobless Claims — out on Thursday —are expected to show 306K new claims, if the number is significantly lower, it could affect the Fed’s rate decision on the 17th and send the Greenback even higher against the commodity currencies.
Data that will significantly affect the Aussie include Thursday’s release of Australian Employment Change (+15.2K) and the Unemployment Rate (6.3%), as well as MI Inflation expectations. The week will end with significant U.S. economic data including Retail Sales (+0.3%) on Friday which could significantly affect the AUD/USD exchange rate.
AUD/USD could target 0.90 soon – Elliott Wave Analysis