Analysts at TD Securities explained that it is another busy data day with two more crucial Q2 puzzle pieces.
Key Quotes:
“(1) Net exports where we look for a marginal +0.1%pt contribution to GDP (mkt also 0.1%pt) and the current account deficit to remain at a low -2.6% of GDP or -$A12b (mkt -$A11b); and (2) still not on BBG ECO but for Q2 government spending we expect a solid +0.6%pts contribution to GDP via a +2% lift in consumption and a seasonal +5%/q bump in investment (the latter we attach upside).
“A few hours later we expect a cut and paste RBA policy statement:
After the RBA communication saturation in August, there is literally nothing new to say. The Board could comment that Q2 GDP growth looks to be around 3%/y (they won’t have the data early, just the same partials that we have) or could comment on a major bank lifting the key standard variable mortgage rate. If not enough to cover today, the RBA speaks in Perth at a post RBA Board dinner, again likely more of the same but headlines will be watched just in case in London time.”
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