Australian weekly consumer confidence index rebounds

Australian weekly consumer confidence rebounded. The ANZ-Roy Morgan Australian consumer confidence rose 2.3 percent, partially rebounding from the 3.5 percent fall in the previous week. The details were widely positive, with four out of five sub-indices posting rises.

Households’ views towards current economic conditions strengthened 0.4 percent following sharp losses in the earlier two weeks. While views toward current economic conditions have only steadied after these falls, they continue to be above their long term average. Consumers were more positive about future conditions, with this sub-index bouncing 6 percent last week and nearly countering the 8.8 percent fall in the earlier week.

Views towards current finances rose 6 percent bringing the sub-index to a six-week high of 110.4. The rebound in sentiment around future conditions was more modest at 1.5 percent, countering the 1.3 percent decline in the earlier week.

Sentiment about the ‘time to buy a household item’ continues its downward trend, falling 1.5 percent to 133.5. Inflation expectations rose to 4.5 percent on a four-week basis.

A widespread rebound implies that confidence continues to be underpinned by solid fundamentals, underneath the weekly volatility, noted ANZ’s head of Australian Economics, David Plank.

“Though economic conditions have fallen from their peak, some correction was not unexpected given their rapid run up since November. Even now, aggregate economic conditions remain well above their long term average, consistent with a robust labour market and strong activity. The resolution of events in Canberra may support confidence in the coming week, barring any new triggers”, added David Plank.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was bullish at 80.1364, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 65.6177. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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