Westpac Australia & NZ Economics Weekly

In a week in which Greece will most likely take the lion's share of headlines, there are a number of other key events to watch. First and foremost, for Australia, we receive timely updates on business confidence and conditions (the NAB survey) and on consumer confidence (Westpac–MI Consumer Sentiment Index). The latter is particularly important, given confidence was reported as weak last month and since that time, developments in China and Greece have been writ large. Helpful for sentiment however has been the broad stabilisation in the unemployment rate, supportive of household's labour market expectations. Offshore, Chinese Q2 GDP will be reported at a crucial time for financial market sentiment. And we will be watching with great anticipation on Wednesday night as Chair Yellen addresses the US Congress. We are now but two months away from the anticipated start date for US interest rate normalisation; till now, little has been said about the FOMC's perceptions of the global situation and its potential impact on the US economy. (VIEW LINK)