Australia Westpac Consumer Confidence dropped -0.6 to 100.7 in June. Westpac noted that it’s a “disappointing result” given the RBA’s rate cut on June 4. Also, the results suggests “deepening concerns about the economy have outweighed the initial boost from lower rates. ” Looking at some details, economic expectations for the next 12 months dropped -4.7 to slightly pessimistic territory at 99.3. Though, House Price Expectations Index rose notably by 22.7 to 109.7, in clear response to the rate cut.
Westpac also said “initial sentiment reaction to the June rate cut will be somewhat disappointing for the Bank”. After disappointing Q1 GDP, RBA will need to “make a further downgrade to its growth forecasts”. And “the case for further policy easing remains clear”. Westpac expects another 25bps cut in August.
AUD/JPY is staying in consolidations above 74.96 temporary low for looks vulnerable For now, further decline is expected as long as 76.39 minor resistance holds. Break of 74.96 will resume the fall form 80.71.