21 Jul 2015
Watch out for Wednesday’s RBA Stevens Speech – NAB
FXStreet (Mumbai) - Global Markets Research Team at National Australia Bank (NAB) believe the main Australian event this week will be the RBA Governor’s speech on Wednesday while noting that The Q2 OZ CPI seems less market relevant.
Key Quotes:
“The main Australian event this week will be the RBA Governor’s speech on Wednesday (no topic as yet released).“
“This may shed some new information on how the RBA is seeing the Australian economy and in particular why the labour market is performing better than the Bank expected.”
“We think the reason is that the much larger non-mining economy is outperforming the weak mining economy.”
“The Q2 CPI seems less market relevant, given the likely focus of the Bank on activity trends and given low wages growth will continue to keep inflation broadly contained, irrespective of the Q2 outcome.”
“For the record, NAB expects a higher 0.8% q/q headline outcome (in line with market), driven by around a 12% q/q rise in petrol prices."
"The trimmed mean and weighted median measures are both expected to be around 0.6% q/q (also in line with market).”
Key Quotes:
“The main Australian event this week will be the RBA Governor’s speech on Wednesday (no topic as yet released).“
“This may shed some new information on how the RBA is seeing the Australian economy and in particular why the labour market is performing better than the Bank expected.”
“We think the reason is that the much larger non-mining economy is outperforming the weak mining economy.”
“The Q2 CPI seems less market relevant, given the likely focus of the Bank on activity trends and given low wages growth will continue to keep inflation broadly contained, irrespective of the Q2 outcome.”
“For the record, NAB expects a higher 0.8% q/q headline outcome (in line with market), driven by around a 12% q/q rise in petrol prices."
"The trimmed mean and weighted median measures are both expected to be around 0.6% q/q (also in line with market).”