Market react to the overnight Australian.....>

AUSSIE: Market react to the overnight Australian GDP release.

UBS - In line with our long-held view, Q3 real GDP bounced on a 'base effect',

but was below consensus & the RBA at 0.6% & 2.8% y/y. Indeed looking ahead,

despite booming public capex & better global growth lifting business conditions,

we reiterate "Q3 is close to a peak in growth, given a 'top' of housing activity

& flat prices, amid the lagged impact of macro prudential tightening, which

coupled with weak wages, implies slow consumption." Overall, parts of GDP were

positive, but this is still not hawkish for the RBA, given their forecast of a 3

1/4% boom ahead will likely be downgraded again. Hence, we still see the RBA "on

hold" until Nov -18, but with the risk of a later move.

ANZ - The result highlights the disparate influences on the economy at present,

with household spending under pressure but investment strong. We are encouraged

by the rise in wages, but it needs to be backed up by the Wage Price Index to

impact on RBA policy expectations for 2018.