22 Jul 2015
What to expect from Australia's Q2 CPI, RBA Stevens? - Westpac
FXStreet (Bali) - Australia's Q2 CPI, due at 1.30 GMT, and RBA governor Stevens speech at the Anika Foundation lunch, with a working title of “Issues in economic policy”, due at 3.05 GMT, are going to garner all the attention during the Asian session, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"Australia Q2 CPI will be released at 11:30am Syd/9:30am Sing/HK. Westpac’s forecast is for a robust 1.0% q/q headline, while market median is 0.8%. Our forecast for the average of the core measures is 0.5% q/q and 2.2% y/y compared to the median of 0.6%/2.2%."
"This would bring inflation closer to the bottom end of the RBA’s 2-3% target range. We expect fresh food and fuel to spike higher. Despite falling crude, automotive fuel prices have risen as the refining spread continues to widen, keeping the latter elevated. Offsets this quarter should be modest outside of pharmaceuticals and domestic holiday travel."
"RBA governor Stevens will speak at the Anika Foundation lunch. His speech has a working title of “Issues in economic policy”, at 1:05pm Syd/11:05am Sing/HK. This will be closely watched, especially so soon after CPI."
Key Quotes
"Australia Q2 CPI will be released at 11:30am Syd/9:30am Sing/HK. Westpac’s forecast is for a robust 1.0% q/q headline, while market median is 0.8%. Our forecast for the average of the core measures is 0.5% q/q and 2.2% y/y compared to the median of 0.6%/2.2%."
"This would bring inflation closer to the bottom end of the RBA’s 2-3% target range. We expect fresh food and fuel to spike higher. Despite falling crude, automotive fuel prices have risen as the refining spread continues to widen, keeping the latter elevated. Offsets this quarter should be modest outside of pharmaceuticals and domestic holiday travel."
"RBA governor Stevens will speak at the Anika Foundation lunch. His speech has a working title of “Issues in economic policy”, at 1:05pm Syd/11:05am Sing/HK. This will be closely watched, especially so soon after CPI."