Australian weekly consumer sentiment remains almost the same. Last week, the ANZ-Roy Morgan Australian consumer confidence index rose just 0.1 percent. Within this stable headline result there was quite a bit of movement in the sub-indices. Those relating to personal financial conditions came in stronger, while those looking at the economic outlook dropped.
Current financial conditions rose 4.7 percent, while future financial conditions rose 0.2 percent. Both financial conditions sub-indices have come in positive for two consecutive weeks. Economic conditions came in soft, with current economic conditions falling 6.9 percent and future economic conditions falling 5 percent. Both the sub-indices have come in below their long-term averages.
The ‘Time to buy a major household item’ surged, rising 6.1 percent. It has not been above its current level since July 2018. The four-week moving average for inflation expectations rose to 3.9 percent.
“People were much more positive on their own financial circumstances, but unsure about the economic outlook. This may reflect the way lower interest rates are being perceived: positive at the individual level for many (though not all), but the fact that interest rates need to fall is possibly raising concerns about the economic fundamentals. The bounce in the ‘time to buy a major household item’ may be indicative of the signs of stability in the housing market emerging in other data such as auction clearance rates. The weekly reading of inflation expectations jumped by 0.3ppt to 4.3 percent. This took the four-week moving average to 3.9 percent”, commented ANZ Head of Australian Economics, David Plank.
At 11:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was highly bullish at 103.818 while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -141.215 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
