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(From Market - Asia Pacific)
Australian consumer confidence hit a nine-year high in October of 2003 and is likely to remain strong through the first half of this year. Over the past 12 months, real household income got a double boost from appreciation of the national currency and the rising value of residential real estate, but both of those factors could lead to trouble as 2004 progresses
The national currency (the Australian dollar) has risen in value about 28 percent relative to the U.S. dollar since the outset of 2002. That has given a cost competitive edge to imported goods and services. Australian households have experienced substantial growth in discretionary income over the past two years and that is opening the door to a widening array of imported products. Year-on-year growth in consumer goods imports should hold in the range of 5 to 10 percent through the ...