• Australian weekly consumer confidence index falls again

    Source: FxWire Pro - Commentary / 14 Aug 2018 09:27:24   America/New_York

    Australia’s weekly consumer confidence index dropped. The ANZ-Roy Morgan Australian Consumer Confidence dropped 0.6 percent last week after a 0.8 percent fall in the earlier week. A sharp rebound in household’s optimism about ‘future financial conditions’ was outweighed by deterioration in sentiment through the remaining subindices.

    Household’ views towards current financial conditions dropped 1 percent last week, only partially countering the cumulative 3.5 percent rise over the earlier two weeks. Views towards future conditions moved in the opposite direction, up 2.6 percent – to their highest point in eight weeks.

    Consumers’ continued to be less optimistic regarding current economic conditions – their assessment fell another 1.7 percent last week, on the back of a 2.7 percent decline in the earlier week. Views towards future economic conditions also saw a modest fall of 0.3 percent, though this was following a 1.4 percent rise in the week prior.

    The ‘time to buy a household item’ subindex fell 2.5 percent – its fourth straight weekly fall. Four week moving average inflation expectations remained at 4.3 percent.

    “Geopolitical issues may be weighing on sentiment. US-China trade tension was in the news again, supporting the view that they are unlikely to be resolved quickly. A sharp fall in the Turkish lira, and its associated impact on financial markets more generally, may also have impacted”, noted David Plank ANZ Head OF Australian Economics.

    At 13:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was highly bearish at -126.772, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 64.1019. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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