Free Trial
EURGBP TECHS

Bullish Outlook

US

Corporate Credit Update: Steady

GBPUSD TECHS

Corrective Cycle Still In Play

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

VIEW: Goldman: WPI Lowers Chance Of 50bp Hike In June, Labour Market > WPI

RBA

Goldman Sachs note that “Australia's Wage Price Index (ex. bonuses) increased +0.65% Q/Q in Q122, softer than expected. Annual growth picked up 10bp to 2.4% Y/Y. Compositionally, private-sector wages growth remained steady at 0.7% Q/Q (+2.38% Y/Y) while public-sector wages growth picked up +0.7% Q/Q (+2.10% Y/Y). Wages growth across sectors was mixed, featuring a slight pick up in professional services and construction but ongoing surprisingly soft wages growth in mining (+1.8% Y/Y) - despite very strong signals of labour cost pressures from alternative indicators. Overall, today's downside surprise reduces the likelihood of a 50bp RBA hike at the June meeting as we expect, although we think tomorrow's labour force statistics are more important for the RBA's reaction function than the WPI at this point.”

125 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Goldman Sachs note that “Australia's Wage Price Index (ex. bonuses) increased +0.65% Q/Q in Q122, softer than expected. Annual growth picked up 10bp to 2.4% Y/Y. Compositionally, private-sector wages growth remained steady at 0.7% Q/Q (+2.38% Y/Y) while public-sector wages growth picked up +0.7% Q/Q (+2.10% Y/Y). Wages growth across sectors was mixed, featuring a slight pick up in professional services and construction but ongoing surprisingly soft wages growth in mining (+1.8% Y/Y) - despite very strong signals of labour cost pressures from alternative indicators. Overall, today's downside surprise reduces the likelihood of a 50bp RBA hike at the June meeting as we expect, although we think tomorrow's labour force statistics are more important for the RBA's reaction function than the WPI at this point.”