On Wednesday, GDP from Australia is due. According to analysts at Wells Fargo, the GDP release could offer insight into the degree of urgency for further easing from the Reserve Bank of Australia.
Key Quotes:
“Australia’s miraculous stretch of nearly 30 years without a recession has not yet technically ended, but the performance of Australia’s economy in recent quarters has been anything but miraculous. Real GDP growth has slowed materially since last year, and underlying domestic demand tells a similar story of weakening momentum. Investment has been a key source of weakness for the Australian economy, including a deflating property bubble and softer demand from China.”
“Consumer spending has also weakened, however, a sign that the weakness in Australia’s economy is fairly widespread. With inflation also fairly subdued, the Reserve Bank of Australia (RBA) has already cut rates 50 bps this year to 1.00%, and we see a moderate chance of another rate cut by year-end.”
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