Back
8 Oct 2013
Tentative evidence Australian economy picking up, RBA rate cut cycle over?
FXstreet.com (Barcelona) - During Monday's Asian session we presented early signs that the Australian economy might be coming out of the woods to potentially generate a new 'growth cycle' in coming months.
While such idea is still too premature, thus why it was desrcibed as a 'tentative recovery', which implies subject to new domestic developments short term, including additional information on the jobs markets, for example, today, the Australian economy published yet another encouraging slew of economic indicators.
As published minutes ago: "Australian confidence came at its highest level in 3½ years - +12 vs +6 prior -, with business conditions also improving - -4 vs -6 prior -, yet at a more subdued level – with employment poor."
According to NAB: "Signs of better conditions in finance/ business/ property and construction. Forward indicators – including orders, stocks and capacity utilisation – point to future improvement. But our wholesale leading indicator less certain. Firms manage to increase prices modestly but margins still under pressure. Forecasts unchanged except rate cut delayed to February."
The upbeat data from today follows Australian construction index reading yesterday, also significantly improved at +47.6 vs +43.7 in August, which at the same time follows last week's positive results in both manufacturing and services PMI.
While such idea is still too premature, thus why it was desrcibed as a 'tentative recovery', which implies subject to new domestic developments short term, including additional information on the jobs markets, for example, today, the Australian economy published yet another encouraging slew of economic indicators.
As published minutes ago: "Australian confidence came at its highest level in 3½ years - +12 vs +6 prior -, with business conditions also improving - -4 vs -6 prior -, yet at a more subdued level – with employment poor."
According to NAB: "Signs of better conditions in finance/ business/ property and construction. Forward indicators – including orders, stocks and capacity utilisation – point to future improvement. But our wholesale leading indicator less certain. Firms manage to increase prices modestly but margins still under pressure. Forecasts unchanged except rate cut delayed to February."
The upbeat data from today follows Australian construction index reading yesterday, also significantly improved at +47.6 vs +43.7 in August, which at the same time follows last week's positive results in both manufacturing and services PMI.