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Australian dollar up on strong data,weak yen

ByFIBO Group
Published 11/12/2014, 02:46 AM
Updated 03/09/2019, 08:30 AM

The Australian dollar broke through US87.00 cents before pulling back and settling around US86.80 cents at 4.35pm(AEDT) as strong local data gave the currency a boost. The Westpac Consumer Confidence Index came in at 1.9% up from last month’s number of 0.9%, challenging analysts who have written off the Australian economy claiming it was headed for a downturn.
This strong figure is evidence that consumers are not feeling the heat from the recent decline of the local currency and are still prepared to open their wallets in the lead up to Christmas and the New Year claim Analysts from Fibogroup.

The Aussie dollar also rallied against the Japanese currency, breaking through the 100 yen mark for the first time since May 2013, after speculation swirled that Prime minister Abe of Japan may call snap elections by the end of the year to push through changes and increase the countries sales tax to 10%.

“The idea is that he would go to a snap election to make sure he has still got a mandate to continue with the policies of Abenomics,” said Sam Tuck, senior foreign exchange strategist at ANZ Bank New Zealand. “The markets appear to have taken that one directionally, that he will get the mandate which will increase their ability to enact the difficult policy reform that is necessary for the rebalancing of the Japanese economy. All the political commentators are saying that it is a good time to go and a good time to cement and increase gains.”

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