Australian Dollar remains stronger following Westpac Consumer Confidence

The Australian Dollar is showing strength against the US Dollar despite a 1.7% decline in the Westpac Consumer Confidence index for January, which has dropped to a three-month low of 92.9. This marks an extension of the sharp 9.0% decline seen in December. The market appears to be adjusting to shifting rate expectations, yet the resilience of the Australian Dollar suggests stronger underlying support. Factors such as rising commodity prices are bolstering the AUD, with investors increasingly focusing on the variables that support its valuation. Additionally, the potential for rate hikes returns to the conversation, adding to the optimism surrounding the Australian economy’s fundamentals. However, fluctuations in demand and geopolitical risks necessitate continued vigilance.