THE TAKEAWAY: Reduced consumer confidence > less spending and consumption > AUD weakens
|
EVENT |
ACT |
PREV |
|
Westpac Consumer Confidence (MoM) (JUL) |
-8.3% |
-2.6% |
|
Westpac Consumer Confidence (JUL) |
92.8 |
101.2 |
The record for July fell to the lowest level since 2009 as the Australian economy recovered from the recession. The month to month change also represented the sharpest fall since October 2008 as Australian consumers slowed their spending, wary of possible continued Chinese tightening, which directly hurts Australian exports.
Westpac Consumer Confidence Index. Chart generated with Bloomberg LP Professional Terminal.
Although the Australian dollar gained against the Greenback due to increased risk appetite, the Aussie drew lower after the survey. Westpac also commented after the report that an “easing bias” would be the Reserve Bank of Australia’s most appropriate policy, adding that they see no more rate hikes for the rest of the year. Despite this early data weakening the AUD, traders of the currency will be awaiting Chinese GDP, retail sales and industrial production at 0200GMT.
AUDUSD 5 minute chart; vertical line indicates time of data release. Chart generated with FXCM Strategy Trader.
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