AUD/USD is reporting losses as Westpac consumer confidence tanked in March

• AUD/USD printed session lows on the 5-day moving average of 0.7055 and is currently trading at 0.7068 - down 0.36 percent on the day. 
• Westpac's consumer confidence fell by most since late 2017, data released at 23:30 GMT showed. 

AUD/USD dropped 23 pips to a session low of 0.7055 after a major Australian lender reported a big drop in its confidence indicator.

The consumer confidence tanked 4.8 percent in March. The biggest slide since the end of 2017 erased the 4.3 percent rise in the previous month.

The dismal confidence indicator has come a day after the National Bank of Australia (NAB) reported a deterioration in both business conditions and business confidence indices. 

While the deteriorating business conditions and business confidence warned of a sharp slowdown in both hiring and investments, the drop in consumer confidence indicates spending could slowdown in the near future as well. 

All-in-all, the pressure on the RBA is rising with each passing day and the central bank could cut rates twice this year, as predicted by major Australian lenders. 

Even so, AUD/USD has bounced up from the 5-day MA of 0.7055. The downside is possibly being capped by the soft US inflation data released in the North American session. 

Looking forward, the pair may rise to 0.71 if the equities remain bid, allowing markets to offer greenbacks in response to weaker inflation number. 

Technical Levels