Australian Growth Rate 0.4%, Exports The Bright Spot

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    Australian first quarter GDP was reported at 0.4%…



    Australian ANZ/Roy Morgan weekly consumer confidence 114.6, prior 116.9

    There is Westpac due later


    Australia Westpac monthly consumer confidence -0.6% m/m, prior +0.6%

    For the month -0.6% to 100.7 prior +0.6% m/m to 101.3

    Commentary from Westpac

    This is a disappointing result given the cut in official interest rates this month and suggests deepening concerns about the economy have outweighed the initial boost from lower rates.

    Biggest decline was in the sub-index tracking expectations for the ‘economy, next 12mths’ which dropped 4.7% to be back in slightly pessimistic territory

    ‘finances, next 12mths’ sub-index caught a decent 3.1% rise
    ‘finances vs a year ago’ sub-index weakening 2.4%
    sub-index tracking longer term expectations for the economy showed a slight 1% improvement

    Meanwhile, the economic outlook for the next five years rose by 1 percent, and the index of family finances over the next 12 months advanced 3.1 percent. Consumer Confidence in Australia averaged 101.36 Index Points from 1974 until 2019, reaching an all time high of 123.94 Index Points in May of 2007 and a record low of 64.61 Index Points in November of 1990.


    Reserve Bank of Australia Governor Lowe speaking on a panel in Canberra

    [b]It is legitimate to ask how effective monetary easing would be globally
    If everyone is easing, the effect on exchange rates is offset[/b]

    Global economy has slowed
    Global growth still reasonable
    Risks tilted to downside
    Markets are pricing in rate cuts in major economies

    European banks are a potential weak spot in global economy
    More infrastructure investment would benefit the Australian economy

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