Australian Dollar Edges Higher on Robust Consumer Spending Data
The Australian dollar has inched higher after data showed household spending rose by 0.8% in June, despite high petrol prices and three rate rises from the Reserve Bank of Australia this year.
According to the Australian Bureau of Statistics, drivers responded to high petrol prices by buying new electric vehicles, contributing to the growth in consumer spending.
Economist Harry McAuley noted that 'bearing in mind the data doesn’t reflect the full term of rate hikes, today’s print shows consumers are still spending at a decent clip.'
Markets have priced out almost any chance of a rate rise from the RBA at its policy meeting next week and little prospect of a move in September either.
The Aussie added 0.2% to $0.7015, with support lying at $0.6922 and resistance up at $0.7088.