- News about labour market strength may have boosted sentiment, but it remains deeply pessimistic.
- But with lots of savings, unemployment low, wages growth picking up and more fiscal stimulus arriving we expect household spending to remain solid
- Inflation expectations jumped 0.3ppt on higher petrol prices
AUD is awaiting Reserve Bank of Australia Governor Lowe, speaking at 0000 GMT. His topic is sure to be of relevance:
- "Inflation and Monetary Policy"
Lowe is not going to sound dovish ... the RBA is in hiking mode after rate rises in both Mat and June ... with more to come.