Australia: Data beat expectations - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the Australian data this morning beat expectations, as building approvals rose and balance of payments data point to a bigger net export contribution to Q1 GDP.

Key Quotes

“The result is that expectations of a rate cut in either June or July are fading away. Three weeks ago, the market priced a near-50% chance of a cut by July, now that is pushed back to August. A 4bp rise in 2yr AUD rates vs. the US is definitely ‘worth’ a 1% jump by the currency, but equally it doesn’t alter the prospect of further AUD weakness once positions have been flushed.”