The AUD strengthened today after a volatile previous session. The ANZ-Roy Morgan Australian Consumer Confidence Survey rose to 80.8 from 76.4 the previous week, aligning with the Reserve Bank of Australia’s (RBA) decision to keep interest rates unchanged at its final meeting of the year. December’s Westpac Consumer Confidence also improved by 2.7%, reversing the previous decline of 2.6%.
 
Australian policymakers, including Michele Bullock, the RBA Governor, expressed confidence, emphasizing a cautious approach, close monitoring of data, and the RBA’s commitment to maintaining job gains. They aim to prevent inflation expectations from becoming “unanchored.”
 
Daily Market Drivers Summary: Australian Dollar Strengthens Amid Slowing Business Activity
 
  1. The National Australia Bank's Business Conditions index fell to 9 in November from 13, indicating declines in trade, profitability, and employment in Australia.
  2. National Australia Bank's Business Confidence dropped to 9 from a previous decline of 2, reflecting the current business environment and offering a brief insight into the overall Australian economy.
  3. China’s Consumer Price Index (CPI) fell 0.5% YoY in November, compared to a 0.2% decline in October, while monthly inflation dropped 0.5%, exceeding the 0.1% decrease in October.
  4. China’s Producer Price Index (PPI) fell 3.0% YoY in November, showing a greater decline than the 2.6% drop in October.
  5. US Nonfarm Payrolls rose by 199,000 in November, exceeding market expectations of 180,000 and the 150,000 gain in October.
  6. US Average Hourly Earnings remained at 4.0% YoY in November, in line with market projections, while the Unemployment Rate fell to 3.7% from the previous 3.9%.
  7. The Michigan Consumer Sentiment Index for December reached 69.4, a significant rise from the previous 61.3.
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The “AUD Dollar” analysis is based on fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content is meant to enrich readers' information. Always conduct independent research regarding other forex information to serve as a reference for your trading.
 
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