Despite having had a difficult couple of days, the Australian dollar (AUD) increased its value today by more than 0.7700 against the US dollar (USD).
Besides many other factors, the credit of this victory goes to US Michigan Consumer Sentiment Index.
On June 11, 2021, the University of Michigan plans to release the Michigan Consumer Sentiment Index data.FxStreet.com predicts that it might register the figure of 84 in June compared to the previous month’s data of 82.9.
The Michigan Consumer Sentiment Index is a poll of individual consumer confidence in economic activity in Michigan. It depicts whether consumers are willing to spend money or not.
Moreover, today’s consumer inflation expectation reading also has a part in today’s success. The economists predicted that Consumer Inflation Expectation would stand at 3.6% in June compared to last month’s data of 3.5%, but it crossed the record and be at the status of 4.4%.
The consumer inflation expectation figure shows how consumers expect inflation to rise over the next 12 months. The higher the impact of increasing expectations on the likelihood of a rate hike by the Reserve Bank of Australia (RBA), the more likely it is. As a result, a high reading for the AUD should be bullish.
Because there are fewer levels of support to protect it from the decline, the price movement indicates that it will continue to follow the bearish trend for some time. Short-medium trading would be better served by selling at the current level.