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Westpac consumer sentiment lowest since August 2011

FXStreet (Bali) - Westpac Australian consumer sentiment fell sharply in May, posting its lowest level since August 2011 following the government's budget release last week, in which tough spending cuts and new levies were announced.

As Reuters reports: "The survey of 1,200 people showed the index of consumer sentiment fell a seasonally adjusted 6.8 percent in May from April, when it rose 0.3 percent. The index reading of 92.9 was down 4.8 percent on May last year. A reading below 100 means pessimists exceed optimists."

According to Bill Evans, Chief Economist at Westpac: "The sharp fall in the index is clearly indicating an unfavourable response to the recent Federal Budget. This puts the index at its lowest level since August 2011, before the Reserve Bank began its recent rate cut cycle."

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GBP/AUD is trading at 1.8261, up 0.24% on the day, having posted a daily high at 1.8270 and low at 1.8212
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