RBA: The key pinch point likely remains wages growth - HSBC
|In its latest note released overnight, the analysts at HSBC offered their afterthoughts on the RBA meeting minutes and its subsequent impact on the AUD.
Key Quotes:
“The RBA minutes ran through the usual laundry list of factors affecting the economy, concluding that policy inaction, for now, is appropriate.
The mix of factors allowed the Sydney Morning Herald to cite the "significant risk" that the RBA sees around weak consumer spending, whereas Bloomberg reported that Australian bonds were lower after the minutes signaled "confidence" that unemployment would fall and inflation would climb.
The AUD was little changed given the myriad of factors supported patience on the policy front.
The key pinch point likely remains wages growth. If this picks up, the RBA can pivot towards the exit on rates (HSBC looks for a hike in Q2 18). If not, then we can expect the current patient stance to be extended.“
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.