Does consumer confidence track the Australian dollar?

Wednesday, 17 September 2014

A throwaway line yesterday by Gary Morgan piqued my interest:

The decline in ANZ-Roy Morgan Consumer Confidence this week (111.3, down 2.0pts) comes after a steep fall in the Australian Dollar last week – down by more than 3c to under 90 US cents although the Australian Dollar has now recovered slightly (today at 90.38 US cents).

Roy Morgan has conducted Consumer Confidence research throughout Australia for over 40 years and we know that when the Australian Dollar falls Consumer Confidence also falls. We have seen this happen once again this week.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.