Weekly Updates

In Australia, the RBA kept the cash rate target unchanged this week as expected, but sharpened its tone and appeared less willing to deliver a cut at the next meeting in November.

In Australia, the August CPI indicator surprised to the upside, while S&P Global PMIs suggested a slower pace of expansion in September.

In Australia, employment saw a surprising decline in August, driven by fewer full-time jobs. The unemployment rate remained steady at 4.2% due to lower labour force participation.

In Australia, NAB business conditions improved slightly in August, while business confidence deteriorated somewhat, but both measures remained around their respective long-term averages. The Westpac Melbourne Institute consumer sentiment index retreated from a 3.5-year high in September, while inflation expectations rose.

In Australia, real GDP rose more than expected in Q2, supported by private consumption growth. This was followed by a further increase in the household spending indicator in July. The current account deficit narrowed in Q2, mainly due to an improvement in the net primary income balance, while the goods trade surplus rose in July amid higher gold exports.

In Australia, the RBA Monetary Policy Board minutes confirmed that cash rate cuts are likely to continue in the coming months. The July CPI indicator was an upside surprise. Construction work done rose more than expected in Q2, but private sector capex growth disappointed. Private credit growth accelerated in July, driven by an increase in business borrowing.