Australia: June NAB survey was encouraging - TDS

Research Team at TDS, notes that the Australia’s Jun NAB survey (conditions cyclical high of +12, confidence doubled to +6) was encouraging as a post-Brexit take on conditions in the domestic economy.

Key Quotes

“All categories improved (employment, orders, profits) except, notably, labour costs and selling prices. The next survey will be post-election and may remain buoyant with a business-friendly Coalition returned to power. The RBA watches this survey closely and adds to its ‘wait and see’ stance.

Fed Voter Loretta Mester (hawk) spoke at the Sydney Banking and Financial Stability conference in Sydney. The remarks mirrored those she delivered in Stockholm last week, reiterating that financial stability should not become the Fed’s 3rd mandate. There was no discussion on the outlook for current Fed policy or the US economy.

RBA Luci Ellis, the Head of Financial Stability spoke a few hours after Mester at the same conference. She displayed no such concerns about housing and financial stability in Australia compared to the speech delivered by the RBNZ Dep Gov last week.”