Australia: Stimulus not hitting the desired target, labour market to soften – ANZ


ANZ analysts suggest that there is little evidence of the expected (and hoped for) positive impacts of rate and tax cuts on the private sector – aside from in the housing market for the Australian economy.

Key Quotes

“Following last Friday’s disappointing 0.4% rise in August retail sales, ANZ-Roy Morgan consumer confidence fell 2.1% during the week, meaning it’s back below the long-run average. Although households still feel quite positive about their current finances, recognising the impact of tax and interest rate cuts on their budgets, they are worried about the economic outlook, and so unwilling to increase spending. This is consistent with the Westpac consumer confidence measure, which fell 5.5% to a four-year low in October.”

“Business confidence hasn’t fared any better, deteriorating to a six-year low in September. Business conditions saw a minor improvement from their five-year low, but key indicators, including profitability, trading and forward orders, remain well under long-run averages. Although the employment index looks more positive, it is still signalling an approaching slowdown. This week we take a closer look at employment outlook, and particular the state-by-state drivers.”

“And so it seems the housing market alone is responding to the monetary stimulus, as well as regulatory easing. Investor lending was up 5.7% m/m and owner-occupier lending was up 1.9% m/m in August. This is consistent with the rebound in auction clearance rates and prices in the month.”

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 consolidating as markets digest the new US-Sino trade truce

EUR/UDS is trading around 1.1030, little changed. Markets are digesting the US-Sino handshake deal that prevents new US tariffs that were planned for Tuesday. Euro-zone industrial output is due out.

EUR/USD News

GBP/USD slips below 1.26 as Brexit talks drag

GBP/USD has kicked off the new week with a drop below 1.26 as Brexit optimism fades. Intense weekend talks have failed to result in an accord. Negotiations continue ahead of the EU Summit. 

GBP/USD News

USD/JPY retreats from 2-1/2 month tops, still comfortable above 108.00 handle

A partial US-China trade deal on Friday weighed on the JPY’s safe-haven status. Traders now seemed inclined to book profit despite a pickup in the USD demand.

USD/JPY News

Gold climbs to session tops, inching closer to $1500 mark

Gold edged higher through the early European session and is currently placed at the top end of its daily trading range, around the $1495 region.

Gold News

Forex Today: Markets skeptical about US-Sino trade truce and sterling suffers a hangover as talks continue

Markets are cautious regarding the US-Sino partial trade deal. The world's largest economy agreed on a "hand-shake" agreement which is yet to be written. It includes a Chinese commitment to buy agrifoods.

Read more

Forex MAJORS

Cryptocurrencies

Signatures