The Aussie Dollar (AUD) extended upside movement against the US Dollar (USD) on Wednesday, increasing the price of AUDUSD to more than 0.7065 following the release of consumer confidence report. The technical bias already remains bullish because of a Higher High in the recent upside rally.
The Australian dollar followed the EUR in its intraday decline yesterday, weighed also by a fall in gold prices, which are pressuring last Friday’s multi-month lows.
Australia Consumer Confidence
A measure of Australian consumer sentiment jumped to a six-month high in November as people became markedly more optimistic on the economic outlook, another sign that further cuts in interest rates might not be needed. The survey of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment rose a seasonally adjusted 3.9 percent in November.
The index has been volatile recently, with steep increases in August and October sandwiching a sharp fall in September. The index reading of 101.7 was 5.3 percent higher than in November last year and showed optimists finally outnumbering pessimists.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy if we get a valid bullish reversal candle on the daily chart.