Trial now

(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

RBA: First skim of the RBA statement reveals very little to rock the boat, with
policy settings and forward guidance unch. ITs assessment re: the international
situation is a little more upbeat as it notes that "Leading indicators have
generally picked up recently, suggesting the worst of the global economic
contraction has now passed. Although it still cautions that "despite this, the
outlook remains uncertain and the recovery is expected to be bumpy and will
depend upon containment of the coronavirus."
- The Bank also notes the current economic hardships, while highlighting that
"conditions have, however, stabilised recently and the downturn has been less
severe than earlier expected. While total hours worked in Australia continued to
decline in May, the decline was considerably smaller than in April and less than
previously thought likely. There has also been a pick-up in retail spending in
response to the decline in infections and the easing of restrictions in most of
the country."
- Reiterates previous language surrounding the likely need for fiscal and
monetary stimulus for some time.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |