On Wednesday, the Westpac Banking Corporation released the Australia consumer confidence index. It decreased by 5.2 percent from 113.1 to become 107.2 in June. 

In total, the whole index decline has been reaching 9.7% in the last two months. That shows the difficult way of recovery. It is especially for the economic sectors from the pandemic effect. 

In its newest statement, the Westpac economic experts stated that the declining index on May can be considered as the corrections. That is after a jump in April as its highest level in the 11 years period. 

However, the slipped index in June states that there is a concern owned by the consumers to the economic prospect. It is related to the lockdown decision which is done in Melbournem.

However, NSW Brings the Good News

The lockdown in Melbourne will be applied for two weeks. Meanwhike, the survey done by Westpac was noted in the first week of that lockdown. The decline can be seen in almost all the supportive components. 

The sub-index recently is going down from 97.9 to 89.6. The financial condition for the next 12 months is also slipped from 109.5 to become 107.3. The short-term economy prospect is slightly declined. 

That was from 121.1 to become 108.7. Meanwhile, the economy condition sub-index for the next 5 years is slipped from 115.6 to 114.0. The biggest weakening of 7.5% is happened in Victoria. 

That is followed by another same trend in Queensland, 9.0 percent in the west Australia, and 10.9% in the south part. However, the optimistic result still can be gotten from the NSW. 

The AUD/USD is Consolidated 

NSW or the new South Wales index was only slipped by 1.1%. It is because NSW is a state with the biggest economy condition in Australia. The release of Australian consumer confidence index yesterday morning was noted. 

However, that doesn’t has any significant effects to the US dollar movement. The AUD/USD pair this time is around 0.7742 or it is 0.09 percent stronger from the daily open price.

Generally, the USD volatility yesterday morning was slipped to the lowest level in a year. It is because the investors are still waiting for the inflation data from the United States of America. 

A clearer signal due to the inflation is the main aspect to predict the further steps made by The Fed due to the Tapering plan. The continuous US inflation increase may push the Fed to do tapering faster.  

Meanwhile, Pound Sterling is Quite Defensive 

Pound sterling is defensive to some major currencies in yesterday trade. That happened in line with the news of COVID-19 delta variant. However, pound is supported by the high vaccinationsm

The fact that the patients treated in the hospital don’t experience the significant increase as well. Now, market is highlighting the delayed lockdown opening which will be opened in 21 of June. 

The Times reported that the government's optimism to continue the plan to repeal all social restrictions on June 21 can be delayed. It is because some of the cabinet ministries show their pesimistic. 

It is especially after they got the newest briefing from the senior medic advisor. That delay will be needed to ensure that the whole people with the age of more than 50 years old can be vaccinated. 

The Pandemic Situation in the Great Britain

Professor Oliver Johnson of Bristol University said the R estimate for the spread of COVID-19 in the UK now stands at 1.47. That is, the case rate increases by 6.7 percent per day, 57 percent a week, and doubles every 11 days.

The UK government will discuss the final decision on the realisation of the June 21 deadline at a cabinet meeting on 14 June. The development of COVID-19 cases between today and then is likely to continue to be in the spotlight.

That also withstand the Sterling's movement in a limited range. Despite these concerns, some analysts remain optimistic about the pound's prospects for a longer period of time