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Australia's consumer confidence strengthened in August, survey data from Westpac showed Wednesday.

The Westpac-Melbourne Institute Index of Consumer Sentiment rose to 100 in August from 96.5 in July. All components of the indicator expect unemployment expectations improved in August.

Results come as somewhat of a surprise given that the survey was conducted against a turbulent backdrop with global financial markets roiled by escalating trade tensions between the US and China and the ASX down 3.4 percent.

Nonetheless, data followed an unexpected 4.7 percent fall in the indicator in June and July that came despite consecutive rate cuts from the central bank and the restoration of political certainty following the May Federal election, Westpac noted.

Bill Evans, chief economist at Westpac said, the Reserve Bank of Australia will be cutting rates at least twice more in this cycle.