The Australian dollar slipped to around $0.70 on Tuesday, ending a two-session winning streak as market sentiment deteriorated in response to mixed domestic data. Consumer confidence fell 2.6% month-on-month to 90.5 in February 2026, its lowest level in ten months, after a 25-basis-point interest rate increase — the first in more than two years — intensified pressure on household finances.
The decline in sentiment followed Monday’s data showing that household spending unexpectedly contracted in December, after having risen in the previous two months. Meanwhile, total dwelling approvals tumbled 14.9% month-on-month to 15,542 units in December 2025, a four-month low. Approvals for private houses also softened, rising just 0.4% to 9,847 units, down from a 0.8% increase in November.
Providing a modest offset, NAB’s Business Confidence Index inched up to 3 in January 2026 from a downwardly revised 2 in December, its highest reading since October.
