Economic wrap and key events ahead: Aussie CPI - Westpac

Analysts at Westpac offered an Economic Wrap and key events ahead in Asia.

Key Quotes:

"US Corelogic house prices for 20 cities rose 0.89% in May for a yoy pace of 5.24% (from April’s 5.44%). All 20 cities posted gains. New home sales of 592k in June were stronger than the 572k in May, making a cycle high. Conference Board consumer confidence was steady at 97.3, beating expectations of 96.0. Confidence has been ranging sideways, buffeted by political uncertainty but supported by equity and house price gains.

Economic Event Risks Today

Australia: Q2 CPI will be closely watched, being a key input into the RBA’s August decision. The main indicators are the core measures. A soft print of 0.35% anticipated, with moderation in housing costs key. Annual core inflation should fall to a new record low of 1.4%yr. Headline CPI of 0.5% is expected, the result of rising fuel and fresh fruit and vegetables.

China: Consumer confidence (Westpac-MNI) has been improving, in contrast to the PMIs. The July survey was conducted post Brexit, but these global events typically have little effect on Chinese sentiment anyway."