Ahead of today’s jobs data, analysts at TD Securities noted that Consumer sentiment picked up a little to 102.1 via a rebound in current conditions (+2.4 to 104.6) led by family finances.
Key Quotes:
“This was entirely due to income tax cuts (in the May budget) sinking in. The offset was economy in 5y, down -3 to 95. Maybe softer house prices are working its magic as well, with time to buy a house +5 to 105.7, after consecutive declines.”
“The RBA Governor’s speech on ‘Productivity, Wages and Prosperity’provided little in terms of new leads. The Governor reaffirmed his positive outlook for the global and domestic economy, however he indicated that the prospect of an RBA rate hike is ‘some time away’ until wages growth picks up. We believe the RBA is looking for wages growth of 3%+ before pulling the rate hike trigger. The RBA acknowledged a tightening in credit conditions, but believes not a cause for concern.”
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