Australian consumer sentiment index rises for second consecutive week

Australian weekly consumer sentiment rises for the second consecutive week. ANZ-Roy Morgan Australian Consumer Confidence index rises 1.4 percent. The gain has brought the index close to its highest level since the start of December.

The financial conditions subindices came in positive. The current financial conditions measure indicated a marked rebound of 3.2 percent, to a level that is rarely exceeded, while future financial conditions rose 1.3 percent. The economic conditions subindices also came in positive, with current and future economic conditions rising 0.9 percent and 1.4 percent, respectively.

The ‘time to buy a household item’ index was the only subindex that was negative. The index dropped 0.3 percent to its lowest level since October. Four-week moving average inflation expectations dropped 0.1 percentage points to 4.1 percent.

Consumer sentiment is showing signs of rebound in spite of a decidedly mixed domestic economic environment, noted ANZ’s Head of Australian Economics, David Plank. The stronger AUD and a more supportive tone from the Fed might have been responsible for rise in sentiment. Also, a slight improvement in Chinese PMI might have aided.

“The mixed economic backdrop makes it difficult to believe an uptrend in confidence will be sustained, but the fact consumer sentiment is well above average is a pleasing contrast to some of the more downbeat news recently”, said David Plank.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was slightly bearish at -56.4685, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 75.312 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex