Australia's consumer sentiment rose 2.0 percent in August compared with July, following cuts in interest rates that are applied by the Central Bank of Australia (RBA) to new low level last week.
The index of consumer sentiment released by The Westpac Melbourne Institute on Wednesday (08/10/2016) this morning rose 2.0 per cent towards level 101.0 in July, indicating that there are more consumers who are optimistic than pessimistic consumer in Australia though it fractionally.
The acquisition increases with the comparison of four of the five components of the surveyed, strengthened in August. The only component that SAG is the perception toward the economic outlook in the next five years, where there is a decline by as much as 0.4 percent marginally. 4.3 percent of the family's finance predicted to surge next year.
"The response to this development has been more calm than when cutting interest rates earlier," said Bill Evans, Westpac Chief Economist quoted by MarketWatch.
Political Influence
In may, consumer confidence increased 8.5 percent, according to the survey of Westpac. Political influence likely participate in the consumer confidence numbers. The results of the election that returned the Liberal National Party Coalition to the Government estimated at hardness, noted by the survey respondents, said Evans.
Responding to the report, Australia Dollar climb hike against the U.S. dollar, with the AUD/USD traded at the range 0.7691, up 0.25 percent from the previous position.
In addition to Consumer Sentiment, Australia also released data on housing loan for the month of June rose 1.2 percent, below the 2.4 percent increase predicted for the base MoM. Housing financial investment for the month of June also rose 3.2 percent, below the 3.9 percent last month. During the later, Governor of the RBA, Glenn Stevens, is scheduled to deliver his speech.
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