Dismal consumer mood in Australia might result in RBA rate cut soon

Dismal consumer mood in Australia might result in RBA rate cut soon

Australian customers have become pessimistic in a one-two punch to the Australian economy already facing an abrupt property downturn along with anemic wages surge, increasing the risk of an interest rate trim as soon as next month.

Decelerating global surge as well as a trade clash between China and America made Australia's key financial institution consider an easing.

That radical policy change by the country’s major bank was underscored by Wednesday’s poll that revealed that the Melbourne Institute and Westpac Bank index of customer sentiment headed south by 4.8% this month in contrast with February’s outcome of 4.3%.

Compiled from a poll of 1200 respondents, the index headed south by 4% from 2018. It means that optimists have been already outnumbered by pessimists.  

It steeply contrasted with the cautiously optimistic customer mood in 2018.

The figures showed up a day after in February a closely-watched measure of Australian business conditions tumbled below the long-run average, suppressed by dives in sales and corporate profitability.

The business and consumer confidence polls actually confirm the weakening in Australia’s economy lately and hint at subdued conditions.

Notwithstanding the RBA's doggedly neutral stance, in the official cash rate by August domestic money markets are absolutely priced for a 25-basis point trim.

As a matter of fact, the Australian dollar inched down by about 0.4% ending up with $0.7049 as the consumer poll emboldened rate doves, making its way to a recent two-month dip of $0.7030.

One reason for the dismal sentiment in the report was a steep deceleration in the A$1.9 trillion economy in the second-half of 2018, in part because of the housing downturn.

Similar

Latest news

German exporters don’t care about stronger euro

German exporters demonstrate ascending optimism as for their business prospects because growing demand from other euro zone countries helps to compensate worries regarding the strengthening currency, as the Ifo economic institute told on Wednesday…

Japan's October machinery orders tack on

In October, Japanese machinery orders rebounded with a faster soar than anticipated, thus re-affirming the resilience of capital spending, which is a major driver in the Japanese economy's almost two-year expansion…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera