9 Jul 2013
Flash: Next RBA rate cut expected in August - NAB
FXstreet.com (Barcelona) - The domestic economic outlook remains soft, the NAB Economists note, "with the latest NAB survey reported the weakest readings for business conditions & capacity utilisation for more than four years" the Bank said.
NAB Economists add: "Business conditions in retail, manufacturing and mining are particularly weak. Labour market forward indicators still point down and transition from mining investment is creating a big structural adjustment task."
The combination of domestic weakness, softness in China and financial volatility, as NAB Economists state, "have encouraged us to revise down our track for the AUD/USD (reaching 88c by end 2013 and 83c by end 2014) and bring our next expected rate cut forward to the next meeting on 6 August (previously November), assuming no surprises from unemployment or inflation."
NAB Economists add: "Business conditions in retail, manufacturing and mining are particularly weak. Labour market forward indicators still point down and transition from mining investment is creating a big structural adjustment task."
The combination of domestic weakness, softness in China and financial volatility, as NAB Economists state, "have encouraged us to revise down our track for the AUD/USD (reaching 88c by end 2013 and 83c by end 2014) and bring our next expected rate cut forward to the next meeting on 6 August (previously November), assuming no surprises from unemployment or inflation."