10 Jul 2013
Flash: Aus jobs last straw to confirm RBA Aug cut - NAB
FXstreet.com (Barcelona) - The Westpac Consumer confidence indicator fell 0.1% in July, the third fall in the past four months, notes Spiros Papadopoulos, Economist at NAB.
As Papadopoulos explains: "Near-term indicators were weak, and overall fall would have been greater except for a surge in the 5-year economic outlook. Rising unemployment, petrol prices and lower AUD are hurting confidence."
The downbeat readings in both business and consumer confidence in the past two days, according to Papadopoulos, "is a worrying sign for the RBA", adding that "a weak labour market report tomorrow (NAB expects a fall of 15K and the unemployment rate to rise to 5.6%) would further increase the prospect of a rate cut in August."
As Papadopoulos explains: "Near-term indicators were weak, and overall fall would have been greater except for a surge in the 5-year economic outlook. Rising unemployment, petrol prices and lower AUD are hurting confidence."
The downbeat readings in both business and consumer confidence in the past two days, according to Papadopoulos, "is a worrying sign for the RBA", adding that "a weak labour market report tomorrow (NAB expects a fall of 15K and the unemployment rate to rise to 5.6%) would further increase the prospect of a rate cut in August."