- We expect the increase in infrastructure investment costs to continue for some time.
- Wage growth remains low and for a longer time, as some sectors are having difficulty paying.
- Debelle believes that if RBA raises interest rates now and keeps them high. households will have serious difficulties in servicing their debt.
- We are currently in a position where it is difficult to think about raising the basic interest rate.
- We will monitor the country's economic performance and, with very good data, we will proceed to an increase, but this is unlikely in the near future.
- The country is continuing to restructure its economy as planned, and rising investment beyond the raw materials sector proves it. Revised data show a solid upward trend in non-mining investments.
- Investment growth outside the raw materials sector is mainly focused on healthcare, information technology, infrastructure and telecoms. According to Debelle, these news should have a positive impact on AUD, but in the short term.
Given the diverging RBA and FED policies, we expect AUD/USD to go down again and any Australian adjustment will give us good sales versus the dollar.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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