AUD/USD is trading sideways on Friday, around 0.6480 at the time of writing, following the release of a key indicator that showed a sharp deterioration in US consumer confidence. The University of Michigan’s index of consumer sentiment fell to 50.3 in November from 53.6 in October, missing expectations of 53.2, reflecting rising concerns about inflation and the broader economic outlook.
The Current Conditions Index fell to 52.3 from 58.6, while the Expectations Index fell to 49. Inflation expectations were mixed, with the annual outlook rising to 4.7%, while the 5-year gauge eased to 3.6%. This combination of lingering inflation concerns and weak economic sentiment weighed on the US dollar (USD) as markets increased bets on a dovish stance. Federal Reserve System (Fed).
Investors now see a possible rate cut in December, with the CME FedWatch tool suggesting a 72% chance of such a move, compared with 63% a week ago. However, Fed Chairman Jerome Powell maintained a cautious tone, stressing that more data is needed before making any policy decision. A drop in consumer sentiment combined with a softer labor market, highlighted by more than 153,000 job cuts in October according to the Challenger report, continues to support expectations of an upcoming easing of monetary policy.
In Australia, the Reserve Bank of Australia (RBA) kept its official cash rate at 3.6% at its November meeting. Governor Michele Bullock said policymakers had not discussed cutting rates, while acknowledging that inflation remained too high. This cautious stance offers limited support to the Aussie, despite concerns about Chinese demand view continue to limit growth potential.
Australian dollar price today
The table below shows today’s percentage change in the Australian Dollar (AUD) against the major listed currencies. The Australian dollar was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | -0.21% | 0.05% | -0.31% | 0.07% | 0.36% | -0.27% | |
| EUR | 0.26% | 0.05% | 0.30% | -0.04% | 0.33% | 0.63% | -0.01% | |
| GBP | 0.21% | -0.05% | 0.24% | -0.13% | 0.29% | 0.58% | -0.06% | |
| JPY | -0.05% | -0.30% | -0.24% | -0.33% | 0.05% | 0.32% | -0.30% | |
| CAD | 0.31% | 0.04% | 0.13% | 0.33% | 0.38% | 0.65% | 0.04% | |
| AUD | -0.07% | -0.33% | -0.29% | -0.05% | -0.38% | 0.29% | -0.34% | |
| NZD | -0.36% | -0.63% | -0.58% | -0.32% | -0.65% | -0.29% | -0.63% | |
| CHF | 0.27% | 0.01% | 0.06% | 0.30% | -0.04% | 0.34% | 0.63% |
The heat map shows the percentage changes of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select the Australian dollar from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will be AUD (base)/USD (rate).
