Dollar boosted by consumer confidence


coins, dollar, moneyThe Australian dollar has bounced on stronger consumer confidence figures and US dollar selling.

At 0700 AEDT on Thursday, the local unit was trading at 93.23 US cents, up from 93.05 cents on Wednesday.

Strong data out of the US recently has seen investors flocking to buy the greenback.

But investors were now taking their profits ahead of the confirmation hearing for US Federal Reserve chairman nominee Janet Yellen, ANZ senior manager FX in Auckland Sam Tuck said.

“People are trimming their long US dollar positions against almost all currencies ahead of Yellen’s confirmation hearing tonight,” Mr Tuck said.

“There’s a credible possibility she could say something which could be negative for the US dollar.

“She is generally considered to be a dove rather than someone who would endorse a quick removing of Fed support.

“So, there’s position squaring ahead of that.”

The Australian dollar was also boosted by a strong consumer confidence report released on Wednesday, Tuck said.

Consumer sentiment increased by 1.9 per cent to 110.3 points in November, from 108.3 in October, according to the Westpac Melbourne Institute Index of Consumer Sentiment.

Low interest rates and rising house prices had energised consumer confidence, the report said.


You have 7 articles remaining. Unlock 15 free articles a month, it’s free.