AU GDP data is due in ~10 minutes, with...>

AUSTRALIA: AU GDP data is due in ~10 minutes, with consensus looking for a

reading of +0.7% Q/Q & +2.8% Y/Y, against prior readings of +1.0% & +3.1%

respectively.

- ANZ note that "the main new pieces of information since our prelim. f'cast are

stronger profits & inventories, offset by slightly weaker than exp. gov't

spending. The focus is likely once again to be on the household indicators -

consumption and wages. Strong growth in retail sales volumes (+1.2%) suggest a

solid outcome for Q2 consumer spending although keep in mind that retail

spending accounts for only ~30% of consumption. Weakness in car sales & some

services is likely to provide some offset to the retail strength. On wages, we

will be watching closely the GDP measure of average wages. Preliminary data

suggest that this is likely to show ongoing modest acceleration, consistent with

the broad sweep of wages indicators. The investment numbers will also be closely

watched given their importance in the current upswing. While the capex survey

suggested mining investment fell sharply, we expect to see another solid rise in

non-mining investment."