According to analysts at NAB, ahead of the Q1 national accounts of Australian economy which are to be released next month, they have left their forecasts largely unchanged with the exception of a weaker inflation outlook.

Key Quotes

“We still see relatively weak growth, low inflation and a stable-to-deteriorating labour market over the next couple of years. Consumption will likely only grow modestly on the back of household restraint and dwelling investment is likely to decline substantially as the housing market continues to cool.”

“Against this, we expect exports to support growth in the near term, with growth in public demand and strength in the business sector to support growth further out. That would see employment growth slow and a small deterioration in the unemployment rate from 2020. With remaining spare capacity in the labour market and the economy more broadly, we expect inflationary pressure to remain weak, only building to the bottom of the RBA’s target band by the end of 2021.”

“In this environment while we expect a series of imminent rates cuts - we have moved the timing forward to June and August. We also see the need for additional monetary stimulus in early 2020. In brief, there is little constraint from the risk of high inflation, but there is a need to see faster rates of growth and lower unemployment.”

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: Adds 8 pips in Asia, remains trapped in a bear flag

EUR/USD picked up a bid at 1.1084 at 00:00 GMT and rose to 1.1092 a few minutes before press time. As of writing, the currency pair is trading at 1.1089. The buyers failed to keep the pair above 1.11 for the third straight day on Wednesday.

EUR/USD News

GBP/USD: Struggles between 10/21-DMA amid bullish MACD

Despite reversing from the 21-day simple moving average (DMA), GBP/USD remains above 10-DMA as it trades near 1.2134 during Asian session on Thursday. Supporting the pair’s upside is a bullish signal by 12-bar MACD.

GBP/USD News

USD/JPY weaker near 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker near the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

The Fed Minutes are Out, but Does It Matter?

The FOMC July 31st Minutes were released earlier today and the collective market seems to think the minutes are less dovish than expected! Gold was volatile right before the release.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •