A notable line in the minutes from the Reserve Bank of Australia May meeting said that developments in labour and housing markets warrant "careful monitoring"

Well, today we get some labour market data that indeed is the sort of thing the Bank believes needs that careful monitoring ... wages data for Q1. On the labour market there are two things the RBA is specifically watching:

  • growth in the jobs market (its too slow for RBA comfort)
  • and growth in wages (ditto).

Slow growth in each is weighing on consumer spending (and, on another issue, the Reserve Bank of Australia is concerned high household debt is also weighing on spending and is a key economic risk ... but that's a story for another day, today its wages).

Australian year-on-year wage price index (spot the trend):

OK, to the calendar:

2350GMT - Japan - Machinery orders for March

  • An indicator to capex coming up(in around 6-9 months)
  • expected +2.5% m/m, an improvement from the prior of +1.5%
  • For the y/y, expected +1.2% from previous +5.6%
  • This is AKA Core Machinery orders, disseminated by Japan's Cabinet Office, it's a measure of private sector machinery orders (excluding ship and power equipment)

0030GMT - Australia - Westpac Bank Consumer Confidence index for May

  • prior was down 0.7% m/m
  • In agreement with the weekly consumer sentiment measure (produced by the ANZ Bank) which has been on the slide and is well under its long run average

0130GMT - Australia - Wage Price Index for Q1

  • expected +0.5% q/q, prior +0.5%
  • expected +1.9% y/y, prior +1.9%

Later, due at 0430GMT from Japan, March final Industrial production

  • the preliminary was -2.1 % m/m, prior (February) was 3.2%
  • & +3.3 % y/y, prior 4.7%