RBA’s Lowe Appears Wednesday, April CPI Also Prints

The focus of the week is likely to be RBA Governor Lowe’s appearance before the Senate Economics Committee ahead of the June 6 meeting and April CPI data. Both are scheduled on Wednesday.

• On Tuesday, building approvals data for April print and are expected to rise 2% m/m after falling 0.1% the previous month. Private sector houses fell 2.8% in March.
• At 900 AEST on Wednesday RBA Governor Lowe appears before the Senate Economic Legislation Committee with Assistant Governor (financial system) Jones. With the next meeting on June 6, comments will be watched closely for indications of the Board’s current thinking. Listen here.
• April monthly CPI data is also due on Wednesday and a small increase to 6.4% y/y from 6.3% is forecast, driven by food and fuel prices. Estimates are between 6.1% and 6.6%.
• CoreLogic house prices for May are released on June 1. March and April posted monthly increases as demand for housing increases amongst a supply shortage.
• The Judo Bank final May reading of the manufacturing PMI prints on Thursday. The preliminary reading was stable at April’s 48, signalling that the contraction in output continued.
• Thursday also sees Q1 private capital expenditure which is expected to rise 1% q/q after 2.2% in Q4. Construction work done due on Wednesday is forecast to rise 0.6% q/q after falling 0.4%.
• Finally on Friday housing finance data for April is published. The total is projected to rise 2% m/m after +4.9%. March saw both the owner-occupier and investor components rising solidly. The RBA’s private credit measures for April print on Wednesday.