Weekly Updates

In Australia, household spending growth exceeded expectations in June. The Melbourne Institute inflation gauge pointed to consumer price growth remaining above the RBA’s goal in July. The goods trade balance unexpectedly rose back into surplus in June.

In Australia, the softer-than-expected June CPI report saw traders wind back their pricing for an RBA cash rate hike, despite the RBA Governor and Assistant Governor not ruling out further monetary policy tightening. 

In Australia, employment saw the strongest rise in over a year, while the unemployment rate held steady at a moderate level in June. The S&P Global flash PMI for July saw a pick-up in business activity growth, while the Westpac leading index pointed to subpar growth ahead.

In Australia, NAB business conditions remained below average in June, while business confidence improved, but remained negative. Westpac consumer sentiment pointed to somewhat smaller, yet persisting pessimism in July. Consumer inflation expectations dropped, though this preceded the recent pick-up in oil prices.

In Australia, the Melbourne Institute inflation gauge suggested that consumer price inflation declined further in June. RBA Assistant Governor Sarah Hunter has reminded that the central bank’s response to supply shock depends on its duration and impact on inflation expectations.

In Australia, the RBA minutes maintained the hawkish tone from the June post-meeting statement. The national Cotality home value index declined in June, driven by lower prices in Sydney and Melbourne. Dwelling approvals saw another fall in May, while the annual rate of private sector credit growth reached the highest level since late 2022. The goods trade balance turned back negative in May.