Bank desk views on the AU labour market...>

AUSTRALIA: Bank desk views on the AU labour market data:

- ANZ: We are looking for a 0.7% q/q rise. Part of the acceleration reflects the

increase in the minimum wage. Our latest update of the ANZ Wage Gauge continues

to suggest that wage pressures are building. While a significant gap between the

headline WPI and the Gauge still exists, the relationship remains tighter for

the WPI including bonuses and unit labour costs. We think that further

improvement in wage growth beyond the Q3 release will be quite gradual.

- RBC: Annual wages growth has lifted from its lows but momentum has been

modest, consistent with ongoing slack in the labour market with y/y running a

little above 2%.

- TD: An upside surprise would erase recent market disappointment in retail

sales and CPI, and lift pricing for a rate hike next year.

- Westpac: There has been some removal of excess slack in the labour market. In

the last year there was also the larger than usual boost from the annual lift in

the minimum wage. And yet we are still waiting for a meaningful pickup in wage

inflation.