Top Forex Trading

Evident all through this year has been a much more circumspect consumer down under. This is not remotely surprising the international backdrop has become much more uncertain, especially in Europe and now Asia as well, and the unemployment rate has been edging higher.

However, it is the historically over-leveraged balance sheet of the household sector and the declining value of financial assets held that is really weighing like an anchor on spending behaviour. It turns out that household liabilities relative to GDP in Australia are higher than in both the US and the UK. Relative to assets, household liabilities are up near 25%, almost double where they were twenty years ago. House prices are very expensive relative to both income and rents and, as such, are well above fair value.

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