USDJPY
EURUSD
AUD
Australian consumer sentiment falls sharply in December: Westpac
Key Takeaways (30s Read)
Australian consumer sentiment fell sharply in December, according to the Westpac-Melbourne Institute survey, signaling revived concerns over inflation and interest rates affecting household sentiment.
In December 2023, the Westpac-Melbourne Institute survey revealed a sharp decline in Australian consumer sentiment. The Consumer Sentiment Index decreased by 9.0% to 94.5, undoing the 12.8% gain seen in November. This decrease pushes the index below the neutral score of 100, indicating that pessimists now outnumber optimists. Deteriorating views on economic outlook and family finances coupled with negative expectations around mortgage rates have significantly impacted household sentiment. Notably, approximately 78% of participants viewed inflation-related news unfavorably. Interest rate concerns also overshadowed sentiment, reflected in 64% of respondents rating coverage negatively. Despite the outlook being less bleak regarding the labor market, Australian consumers remain cautious and highly sensitive to inflation and interest rate risks heading into 2026, further intensifying the outlook for the Australian dollar and domestic demand.
AI Analyst
AI Opinion
"The sharp decline in Australian consumer sentiment reflects heightened concerns regarding the domestic economy and uncertainty around future interest rate movements. The prospect of prolonged high rates could directly affect household financial stability, suppressing consumer spending intentions, which may negatively impact domestic demand and place downward pressure on the Australian dollar. As inflation concerns rise, consumer perceptions are crucial in shaping economic activity. In this context, the Reserve Bank of Australia's monetary policy will be under scrutiny, with the possibility of the Australian dollar being more influenced by international factors than domestic data. The market is likely to react sensitively to interest rate shifts and other macroeconomic indicators in the coming months."
RECOMMENDED BROKER Trusted Broker
Maximize This Opportunity.
Turn AI-detected market inefficiencies into profit with industry-leading specs. There's a reason pros choose Exness.
Raw Spreads
0.0 pips~
Leverage
Unlimited
Execution
Instant
AI Market Analysis Team
Combining advanced AI algorithms with professional trader insights. We analyze market drivers 24/7 to provide objective trading scenarios.