Aussie Consumer Sentiment Lifts

• August’s Westpac-MI Consumer Confidence survey showed a solid 5.7% lift to 98.5, coming closer to the long-run average of 100 and well above the 92.8 print seen at the end of last year.
• The latest RBA rate cut, some easing in cost-of-living pressures for renters, and reduced uncertainty around tariffs all combined to support the improvement.
• Renters led the gains in sentiment, jumping 14.0% m/m to 99.1, while outright homeowners also saw a more modest rise of 4.0% to 100.6.
• Offshore, US Treasury yields eased 1–3bp across the curve as markets continue to firm up expectations of a September Fed cut, now around 85% priced.
• The backdrop of softer activity alongside still-sticky inflation leaves the Fed facing a difficult balancing act in the months ahead.