Barclays write that "a robust labour......>

AUSTRALIA: Barclays write that "a robust labour market is being seen by the RBA

as a key sign that household income growth is likely to pick up in the coming

quarters, which should alleviate some domestic downside risks emanating from a

weaker housing market. The wage report shows that wage growth broadly remains

low, with Q4 growth slightly below the RBA's projection (2.4% y/y). However, we

think wage growth has bottomed and should continue to pick up gradually in

coming quarters, given the ongoing improvement in the labour market. In its

latest Statement on Monetary Policy, the RBA projected a very gradual pick-up in

wages through 2019 and 2020. We see further downside risks to household

consumption if the labour market data tomorrow is also softer than expected."