Australia: Economy likely to grow 1.6% this year – NAB

Analysts at National Australia Bank suggest that they have fine-tuned their forecasts for Australia’s growth in Q2 (now see 0.4 to 0.5% q/q) and see growth of 1.6% this year, before a small improvement to around 2¼% on a year-average basis in each of the out years.

Key Quotes

“The unemployment rate is expected to lift slightly (reaching 5.5%), with employment growth slowing on the back of sub-trend growth. The key dynamic behind this slower growth is a weaker household sector with modest consumption growth (weak wage growth being a key headwind) and ongoing falls in dwelling investment. The public sector and net exports are likely to show some strength, offsetting some of this weakness.”

“We also anticipate a solid performance from the business sector, with private investment likely to rise in aggregate on the back of growth in the non-mining sector, while mining should at least stabilise. However, a weak starting point, with low inflation and sizable spare capacity in the labour market are likely to see the RBA cut the cash rate further (indeed, their own forecasts embody a further 50bps of cuts).”

“We see a November cut as probable but think there is significant risk of further cuts, and would not rule out unconventional policy should the economy not receive substantial support from other policy arms or global headwinds worsen.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.


GBP/USD losses upside momentum at the start of the key day

While optimism surrounding soft Brexit helped the GBP/USD pair to rise on the previous day, the Cable retraces to 1.2165 amid initial Wednesday morning in Asia. The UK PM’s visit to Germany will be closely observed.


USD/JPY: bears moving back to the front

Demand for safe-haven assets picked up in the American session. US 10-year Treasury note yield fell to 1.54% intraday, settles barely above. USD/JPY to resume decline on a break below 106.05, a Fibonacci support.


Gold prices tightening up as traders await the Fed's next call

Gold spot and futures climbed a touch on Tuesday, with spot prices rising 0.72% and travelling between a range of between $1,493.18 and $1,508.70 while Gold climbed $4.10, or 0.3%, to settle at $1,515.70 an ounce, clawing back some of the $12, or 0.8%, lost on Monday. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more