It appears most Australians disagree with the Reserve Bank boss on the benefits of a lower Australian dollar.
ANZ and Roy Morgan's weekly consumer confidence index fell 0.4 per cent to 113.2 as the Australian dollar fell below 80 US cents for the first time in five and a half years.
The currency's slide came after the European Central Bank embarked on an economic stimulus program and the Bank of Canada made a surprise interest rate cut.
RBA governor Glenn Stevens has long called for the Australian dollar to drop and in December said he would like it to be around 75 US cents, to help boost non-mining sectors of the economy.
A weaker Australian dollar makes exports more competitive and imported goods dearer, which would help local manufacturing, farmers, retailers and the domestic tourism sector.
However, ANZ chief economist Warren Hogan said a drop in consumer confidence was partly related to currency falling through the key psychological level of 80 US cents.
"Continuing asset price gains and lower petrol prices is being outweighed by concerns about job security, weak wages growth, a lower Australian dollar and concerns about the federal government budget," he said.
CommSec chief economist Craig James said most people are seeing the local currency's fall as a negative.
"The currency has dominated media attention and that tends to be viewed as bad news, it means overseas goods are dearer and overseas trips become more expensive as well," he said.
"Perversely, the lower Aussie dollar is actually good news for the broader economy, boosting the competitiveness of the business sector."
Share
