The Australian dollar rallied today following the release of the positive consumer sentiment report that made interesting comments about probability of an interest rate cut from the Reserve Bank of Australia.
The Westpac Melbourne Institute Index of Consumer Sentiment climbed by 1.1% in October. Westpacâs Chief Economist Bill Evans commented on chances for a rate cut, saying that, while “a significant number of commentators have been predicting a rate cut in November,” he does not believe that it will happen:
Indeed while we give little probability to a further rate cut at the next meeting our assessment of the growth outlook, including the shape of the construction cycle, points to rates remaining on hold for the foreseeable future.
Yesterday, a business confidence report from National Australia Bank was released, showing that the index was steady at 6 in September.
AUD/USD advanced from 0.7538 to 0.7558 as of 11:28 GMT today. EUR/AUD sank from 1.4656 to 1.4548.
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