Australia: Deluge of data this week - ANZ

Analysts at ANZ suggest that it’s going to be a deluge of data this week as we get GDP partials (profits, inventories, current account), which will feed into Q3 GDP growth, due Wednesday.

Key Quotes

“Retail sales and the trade balance will set the stage for growth in Q4. While the consumer remains challenged, the broader economic picture is turning positive and this is not accounted for in either RBA expectations or the AUD. Any better-than-expected outcomes may provide some upside for the AUD. With investors focused on yield differentials, the data is likely to have an impact on the AUD.”

“The current RBA cycle is already conservatively priced and so upside surprises will have more impact, but either way the data will be important. With US rate dynamics clouding the picture against the USD, we think the AUD will perform well on crosses, especially against the NZD given the differences in momentum.”