The Australian dollar (Currency:AUD) has come under pressure once more over the past few hours following a data release that shows the Australian consumer is feeling a little less positive on the country's outlook.
A look at the latest spot market rates shows:
The pound Australian dollar exchange rate is 0.17 pct higher at 1.5488.
The euro Australian dollar exchange rate is 0.35 pct higher at 1.3216.
The Australian dollar to US dollar exchange rate is 0.2 pct down at 0.9781.
NB: These are inter-bank market quotes, your bank will affix their own discretionary spread when passing on a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please see more here.
The Westpac-Melbourne Institute consumer confidence measure declined by 7% m/m in May and now sits a little below its long-run average.
Savita Singh at ANZ Research says, "the announcement of a proposed new Medicare levy to fund the NDIS and media coverage of the larger-than-expected 2012/13 budget deficit around last week’s Budget may have weighed on sentiment.
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Aus Exchange Rates
"While the Westpac and Roy Morgan series can be very volatile month to month, they appear to have lost some momentum in recent months after increasing since the middle of last year to above-average levels."
Mingze Wu at Oanda points out consumers are feeling less confident in part due to the falling Australian dollar:
"Evans (Westpac Chief economist Bill Evans) stated that consumer confidence was also shaken due to the surprise fall in AUD before and during the survey period.
"If this is true, then one can reasonably come to the conclusion that next month’s confidence data would be even worse as AUD/USD is continuing its journey southwards.
"Evans round up Westpac’s research statement by saying that the case for a rate cut as early as June is strong – fuelling speculations for a rate cut."