Westpac Economics' Weekly Economic Update
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Westpac
This week saw the RBA take a less strident tone in its discussion of the AUD, with the currency now seen as "adjusting to the significant declines in key commodity prices"; previously, a further depreciation of the AUD was regarded as being both “likely and necessary”. The August Statement on Monetary Policy (released after filming) also included a relatively neutral set of forecasts (inflation in target band; growth firming to an above-trend pace in 2016/17), implying a desire to hold rates steady for a protracted period. Other data out this week was mixed. Real retail sales growth was stronger than expected in Q2; activity was broad based by store type but geographically narrow, being strongest in the south east. The July labour force outcome was a wild result, with 38k new jobs created but a 0.2ppt rise in the unemployment rate to 6.3% also seen due to stronger participation. That 30k of the 38k total jobs gain occurred in NSW highlights the reliance of aggregate jobs growth on the south east.
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![Elliot Clarke](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBbEVIIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--2fc580fea5a7267652967b701e42f71c05b672b3/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Screen_Shot_2015-05-28_at_4.08.06_pm.png)
An Economist based in Sydney Australia with a particular interest in macro-financial analysis of the Australian and global economy. Having spent a number of years with the Reserve Bank of Australia and Westpac Economics, monetary policy, the...
Expertise
No areas of expertise
![Elliot Clarke](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBbEVIIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--2fc580fea5a7267652967b701e42f71c05b672b3/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Screen_Shot_2015-05-28_at_4.08.06_pm.png)
An Economist based in Sydney Australia with a particular interest in macro-financial analysis of the Australian and global economy. Having spent a number of years with the Reserve Bank of Australia and Westpac Economics, monetary policy, the...
Expertise
No areas of expertise