Trade Desk Thoughts - Australia Consumer Sentiment

Australia Consumer Sentiment Actual -11.0%, Previous 7.0%

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 dropped 11 percent in October. The index had a seasonally adjusted reading of 82 for October, down from 92.2 seen in September. The outlook on family finances decline 5.8 percent on the month while family finances sentiment was down 1.1 percent from a year earlier. The outlook on economic conditions for the next year also fell by 20.2 percent, while the five year outlook was down 9.1 percent. The index is currently only 3.8 percent above its 16 year lows that it reached in July amid rising interest rates and fuel prices.

Forex Technical Reaction: The Australian dollar has fallen back to support seen in late U.S. trading at .7060 after the initial release.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.