Australia weekly consumer confidence rises 3.9 pct after three straight weekly falls

Australia’s ANZ-Roy Morgan consumer confidence rose 3.9 percent last week, after three straight weekly falls. Sentiment rose across the board, with views towards personal finances showing a particularly solid improvement.

Households’ views towards current financial conditions bounced 4.7 percent last week, more than reversing the 4.1 percent fall over the previous two weeks and bringing the index to an 11-week high.

Similarly, sentiment around future financial conditions rose a solid 6.4 percent, following a 5.3 percent decline in the previous week. While sentiment towards current financial conditions remains elevated in level terms, views towards future financial conditions remain below the long term average.

Consumers’ views towards current and future economic conditions rose 5.6 percent and 2.2 percent respectively last week. Despite these gains, views toward both current and future economic conditions are well below long run averages.

Inflation expectations remained at 4.5 percent on a four-week moving average basis. Inflation expectations have increased from their low point in July, perhaps motivated by higher energy costs.

"In our view, despite a strong labor market and moderate economic activity, any improvement in confidence is likely to remain capped until households experience a material acceleration in wage growth, which seems unlikely anytime soon," said David Plank, Head of Australian Economics, ANZ Research.

Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest