- AUD/USD remains bid after Australia reports an above-forecast drop in Q3 imported inflation.
- Australia’s consumer confidence fell in the third quarter, but at a slower rate.
- The Aussie dollar remains focused on the S&P 500 futures.
AUD/USD is paying little heed to crucial Aussie economic data released soon before press time and keeping moderate gains, tracking signs of risk reset in the US stock futures.
Australia’s consumer confidence published by the National Australia Bank (NAB) improved to -10 in the third quarter from the preceding quarter’s -15. However, both the import and export price indices fell more than expected in the third quarter, overshadowing the slight uptick in consumer confidence.
While the Import Price Index fell by 3.5% quarter-on-quarter in the third quarter, the Export Price Index declined by 5.1%. The data comes a day after Australia reported a rise in the Consumer Price Index in the third quarter.
However, all these data releases are unlikely to deter the Reserve Bank of Australia from providing additional stimulus next month, given the resurgence of coronavirus is threatening to derail the global economic recovery.
That said, the AUD/USD could extend the moderate gains seen at press time if the stock markets regain poise. The currency pair is trading at 0.7067, representing a 0.30% gain on the day alongside a 0.8% rise in the S&P 500 futures.
The US stocks fell sharply on Wednesday, extending the weekly decline on coronavirus fears, strengthening the demand for the safe-haven US dollar.