As Australian consumers became more optimistic, better economic conditions in Australia continued the economic growth in June. The consumer confidence index gained 3.7%, thus reach in 99.1 points. This is the 3rd consecutive increase, yet it is the biggest one since February 2012.
According to Bill Evans, an economist for Westpac, consumers’ optimism is based on the RBA’s interest rate cuts (1.25 points down since November 2011), as well as on the results of the Greek elections and the latest EU summit, which eliminated (or at least postponed) the worst scenario for eurozone. Another factor contributing to the improvement in Australia’s consumer confidence was a 13% decline in gasoline prices.
However, the consumer confidence is unlikely to keep improving at such a pace. Analysts have improved their forecast by 5.8% for the year and by 5.25 for the next 5 years.
Forex.
According to , AUDUSD is currently forming wave А/В of level Н4. At this point. The rally isn’t over yet. The closest levels of resistance are located at 1.0268 and 1.0328. A break below 1.0099 will indicate the forming of wave А(С)/С inside a bigger downswing - wave А/В of level Daily. The closest major level or support is located at 0.9995.
