Forex Flash: Westpac Aus consumer confidence exceeds expectations - NAB

Today, Westpac consumer confidence in Australia “revealed what could only be described as a consumer that is starting to see some blue sky,” said Senior Economist Markets at the NAB, David de Garis, noting “Consumer sentiment rose a sturdy 7.7% in February to an index level of 108.3, a level that is now above its long term average and clinically consistent with good levels of consumer spending.”

According to David, this “Buys more time for RBA to remain on hold in March unless upcoming key quarterly reports amplify downside real economy risks,” despite the “Economy not out of the woods;” the economist adds, suggesting: “more cuts will still be needed to support non-mining economy ahead; 75bps of cumulative cuts still our call for this year,” he concludes.