Australia consumer confidence edges down following pessimism over household finances

After jumping to a 15-week high last week, consumer confidence edged down 0.7 percent to 119.3. This fall was driven by some deterioration in households’ views about their finances.

Providing some offset was an improvement in households’ views about the economic outlook and ‘time to buy a major household item'. Households’ views towards their finances compared to a year ago fell 4.8 percent, more than reversing the gain over the previous week. Meanwhile, after a sharp bounce the previous week, households’ views towards their future finances edged just 0.7 percent lower. Both indicators remain well above their long-run averages, said ANZ in its research note

The four-week moving average in inflation expectations edged higher for the second consecutive week, up to 4.3 percent last week from 4.0 percent in mid-December. Rising inflation expectations likely reflect the recent acceleration in petrol prices, they added.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.67 percent lower at 5,653.5 by 05:10 GMT, while at 5:00 GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bullish for third straight working day at 99.65 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex