Westpac Consumer Sentiment fell by 6.9%
A measure of Australian consumer sentiment dived in June to entirely reverse the previous month's promising increase, a blow to hopes for a much-needed upturn in household spending. The survey of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment slid a seasonally adjusted 6.9% in June.The index reading of 95.3 was 2.3% higher than in June 2014, but the weakest since the start of this year.
The drop wiped out May's 6.4% increase which had followed a cut in interest rates to record lows and a government budget that included a surprise tax break for small businesses. "This is a surprisingly weak result. It now appears that last month's surge of optimism was a brief 'relief rally'," said Bill Evans, Westpac's chief economist.
Evans cited several possible reasons for the pullback including falls in the share market; uncertainty in Europe; more signs of soft conditions in labour markets and nervousness about the outlook for house prices. The Reserve Bank of Australia (RBA) will likely also be disappointed that its latest rate cut to 2 percent did not have a longer-lasting impact on the consumer mood.
Data did not have any major impact on the markets with Aussie currently being traded slightly below 0.77 handle. Pair is likely to find support around 0.7650 area and resistance between 0.7720 and 0.7750 level. There will be no major data releases in the rest of the session.
- Popular
-
UK still likely to leave the EU with a negotiated agreement, says Number 10
A successful deal with the European Union remains the “most… -
Sentix Investors Confidence rose to 14.7 in August
The summer heat in Europe is also causing economic temperatures… -
German factory orders -4.0% seasonally adjusted on the previous month
Based on provisional data, the Federal Statistical Office (Destatis) reports… -
China's July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China's exports are expected to have maintained solid growth in…
Tags
aud/usd2605
boe106
brexit96
china122
cpi147
daily fundamental2278
daily technical2199
ecb113
eur/usd1497
eurozone88
EurUsd1227
forex8896
gbp/usd1447
GbpUsd1111
gdp95
industrial production106
inflation73
interest rates219
ppi93
rba91
resistance71
retail sales125
support71
trade balance108
uk188
unemployment claims160
unemployment rate122
usd1004
weekly fundamental565
weekly technical419