Australian consumer sentiment rises on rebound on views towards economic conditions

Australian consumer sentiment rose for the second consecutive week. The ANZ-Roy Morgan Australian consumer confidence index rose 2.1 percent last week to 118.4, the highest in five weeks. The details also came in positive, with all but one subindex recording gains.

Consumers’ views toward current financial conditions dropped 2.4 percent last week, partly reversing the 4.6 percent bounce recorded previously. In the meantime, confidence around future financial conditions rebounded further, rising 1.6 percent on the bac of a 3.5 percent bounce previously.

Confidence toward both current and future economic conditions continued to rebound, rising a strong 3.4 percent and 3.2 percent, respectively. Both the subindices at present sit at their highest value in five weeks, because of successive weekly gains.

The ‘time to buy a household item’ subindex rebounded 4.1 percent, almost entirely reversing the earlier week’s 4.3 percent fall. Inflation expectations continued to be stable at 4.5 percent on a four-week moving average basis.

“Confidence rose materially this week, driven by an improvement in households’ views towards economic conditions, along with a greater willingness to ‘buy a major household item’. This likely reflects some recovery in domestic equity markets in recent weeks as well as a slight reprieve from trade related headlines – at least for the moment”, stated ANZ’s head Of Australian Economics, David Plank.

However, forward indicators of employment continue to be quite positive, implying that the underlying strength of the labor market is stronger than the data for February/March suggests.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was neutral at -32.7935, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 41.1944. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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