Australia Consumer Sentiment Falls Again In February

Australia Consumer Sentiment Actual -4.6%, Previous -2.2%

Release Explanation: This figure measures the level of consumer confidence and is an average of five indexes measuring different aspects of consumer fiscal health. This is one of the few indicators that are entirely expectation based. Confidence figures are often leading indicators for the consumer spending and the economy as a whole. The headline figure is percentage change in the index value from that of the previous month.

Trade Desk Thoughts: The consumer sentiment indicator for Australia fell to -4.6 percent from last month’s -2.2 percent reading. The sentiment index came in at 85.8 points in February and this is the twelvfth month that the index has held below 100. Consumer confidence has slumped in Australia despite the central bank lowering interest rates to a 45 year low and the plans for the government to spend an estimated A$42 billion on infrastructure.

Forex Technical Reaction: The Australian dollar has gained slightly since this report was released, climbing towards the neutral pivot point after the pair shed over 200 pips in the previous day.

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