Via a client note from Deutsche Bank:
- Increased their Q2 GDP forecast to 0.5% q/q and 3.1% y/y from their prior forecast of 0.4%
- “This reflects a modestly smaller detraction from net exports to GDP(E) apparent from today’s BOP release (-0.9ppt versus our pick of a 1.1ppts contraction) coupled with a modest upside to our estimate for GDP(P) following the business indicators release yesterday”
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The AUD has fallen today ahead of the RBA …. but some of the move (if not most of it) is an across the board USD strength move. Bear in mind that the RBA will have the Q2 GDP data in front of them at the meeting today … I would thus expect the language they use in the accompanying statement to shade a little more away from dovish, leaning a wee bit more hawkish.
More on what to look for from the RBA today:
