Due from Australia today
Q1 Wage Price Index
- For the q/q, expected is +0.6% and prior was +0.6% also
- For the y/y, expected is +2.4% and prior was +2.5%
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We had the Budget last night. As was widely leaked and expected, the government loosened the purse strings a little.
The Budget was, and is, to the extent that it boosts fiscal stimulus, a positive for the AUD. It takes some pressure (not a lot, but some) off the RBA to cut rates to provide stimulus (questions were, and are being, raised about how much impact further cuts to rates would have).
There have been plenty of takes on the Budget in the media ... but the bottom line is the move away from the 'austerity' hokum spouted by this government in their first 15-odd months (or whatever it is) is going to provide (at least in the short-term outlook ... i.e. for these pollies in the lead up to the next federal election in 18-24 odd months) a bounce in confidence and stimulus. The can has been kicked, yes, but the impact will be take some pressure off the RBA.
