ANZ on the GDP and Reserve Bank of Australia today, as part of their updated 'Australian Rates Strategy Weekly'
(In brief, bolding mine)
Today's GDP data continues the theme of inconsistent Australian data prints.
Decent investment, spending and export numbers look good, while wage outcomes wallow in the mire.
The picture remains the same; the RBA has no reason to move on policy for the near future.
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ANZ also comment on the Federal Reserve, their theme in keeping with the comments out of officials today stoking the fire for a March hike being on the table (bolding mine again):
- Federal Reserve members have been at pains over the last week to shake off the market view that rate hikes are not live. While March appears early in the context of a "steady pace of rate hikes", the data gives a green light. Such an environment might shake up markets.
- Markets appear to be shifting out of the sideways grind of recent weeks, following a series of more hawkish comments by Fed officials. The remarks have sharply lifted pricing for a March Fed hike to over 50% though markets are likely to remain wary of taking this further ahead of Chair Yellen's speech on Friday.
