The Australian dollar (AUD) has remained subdued following the latest Westpac-Melbourne Institute Consumer Sentiment Index, which recorded a 6.2% increase to 89.8 in October 2024. Despite this rise, the index remains below the neutral 100 mark, indicating persistent consumer pessimism. This sentiment has contributed to the AUD’s lackluster performance, as consumer confidence is a key indicator of economic health and influences currency strength.
Additionally, the U.S. dollar has strengthened amid expectations of sustained interest rates by the Federal Reserve, further pressuring the AUD. The combination of domestic consumer sentiment and external currency dynamics continues to impact the Australian dollar’s valuation in the forex markets.
