RBA data shows credit card balances across the country fell in July by 2%, the biggest decline over that month for 18 years.
According to Commsec, that fall leaves balances almost flat on a year ago as Australians continue a concerted effort to ditch their debt binge.
Yet despite the falls in debt balances, credit purchases are up 7% on a year ago, the fastest rate in 6 years. So it’s more a case of smart card management than a shift away from transactions.
Unfortunately this also means any rate cut by the RBA is unlikely to see a splurge in spending.New iPhone 5 Unveiled
Apple released the new faster, thinner iPhone 5 overnight to a somewhat muted reception.
While the screen’s bigger, the unit lighter and of course its faster, there isn’t a lot of wow about the latest model phone from Apple. That said, analysts still expected it to sell tens of millions before the years out.
The iPhone 5 has also ditched the old charger and accessory connection for a smaller one, requiring new accessories and adaptors for everything.
It hits Australian shelves next Friday.AUD Down Ahead of Fed Meeting
The Australian dollar had retreated slightly, along with the local sharemarket, as investors await the policy meeting of the US Federal Reserve,The falls are on concern the Fed won’t turn the stimulus taps on high enough, if at all, at their open market committee meeting.