Analysts at TD Securities point out that Australia’s Westpac consumer sentiment picked up a little to 101.5 in October and with an upbeat labour market and positive RBA there could be another modest tick higher.
Key Quotes
“Far more importantly for the RBA and the markets, Q3 Wage Price Index is finally released. With the 3.5% jump in the minimum wage offset by a trimming of penalty rates, it will be a struggle to see wages growth surprise to the upside past our forecast of +0.6%/q and 2.3%/y. An upside surprise would offset recent disappointment in retail sales and CPI and lift pricing for a rate hike next year.”
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