The ANZ Roy Morgan consumer confidence measure is yet to gain a toehold as a focal point for the FX market, but it nevertheless gives a weekly snapshot.
For the week ended May 25;
- Consumer confidence fell 1.1% to 99.3
- It has dipped below 100 for the first time since May 2009
- Confidence has now declined 15% over the past five weeks
ANZ attribute the rent falls to headlines about the tough government budget (both in the lead up and since)
In the most recent survey:
- Consumers’ perceptions of “economic conditions next year” fell 6.2%
- Perceptions of “financial situation compared to a year ago” (which is most correlated with spending growth) rose 1%
ANZ says:
- The overall fall over the past two months suggest consumer spending could soften in the near term
- Maintains its view that consumer spending will improve this year
- Though the speed of recovery could be impacted by the federal budget
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Meanwhile, the AUD it ticking through 0.9250/55, taking out some trading stops but running into sellers again.