RBA Interest Rate Decision
In the meeting held on 5th September the RBA kept the interest rates unchanged at 1.5 % but gave much more positive indications about growth in economy. As per recent economic data inflation is expected to rise gradually, business investments is picking up, employment growth has become stronger, though labor hours remains week. The various forward-looking indicators point to continued growth in employment over the period ahead. Economic growth is still expected to increase gradually over the next couple of years to a little above 3%.

RBA MEETINGS MINUTE
In recent meeting held on 1st August RBA kept interest rates unchanged but gave much more positive indications about growth in economy. Governor Lowe said, business investments have picked up, employment growth has become stronger, though Wage growth remains low, however, and this is likely to continue for a while yet. Inflation is expected to increase gradually as the economy strengthens. The various forward-looking indicators point to continued growth in employment over the period ahead. He said, economic growth is still expected to increase gradually over the next couple of years to above 3%.

House Price Index
This index is about changes housing price in Australia's eight provincial capital cities. This is calculates as weighted average percentage change from the previous quarter.This index measures inflationary pressures from housing sector. And we know growing inflation is good for currency and vice versa falling inflation is bearish for currency so it important indicator.

New Motor Vehicle Sales (MoM)
This index tracks motar vehicle sales month on month in Australia. It is small component of economy but more sales indicates people capacity about spending and their growth in income. As demand reaise production, more production creates employment. This gives idea about economic wellbeing of country.

Building Permits
The Building permits granted in Australia released by Australian Bureau of Statistics (ABS) mostly keep oscillating between positive and negative territory on month on month. New Building permits approval are expected to fall 3 % in July 2017 after rising 10.9% in June 2017. This report is important as it provides assessment housing market conditions.By this report we come to know about consumer spending as income earned from sales of home is used by people for spending on consumption. Which raises demand and growth in cycle. A fall is expected this month.

Business Confidence
National Australia Bank's Business Confidence is likely to come at 7 this month which will give much more positive indications about growth in economy. As per recent National Australia Bank's Business Confidence data inflation is expected to rise gradually, business investments is picking up, employment growth has become stronger, though labor hours remains week. The various forward-looking indicators point to continued growth in employment over the period ahead. Economic growth is still expected to increase gradually over the next couple of years to a little above 3%.

Consumer Price Index
Consumer Price Index in Australia is expected to rise 2.0 %(YoY) and 0.5(QoQ) for the 2nd quarter ending June of 2017. The surge we saw in last quarter in cost of transport and an increase in cost of food and non-alcoholic beverages and housing is being well sustained this quarter. We are also seeing modest price increases in automotive fuel, new dwelling purchase by owner-occupiers, medical and hospital services and electricity. Consumer confidence in Australian is also quite high which will support the economic expansion in coming months just like the first half of this year.

Producer Price Index
In Australia, Producer Prices Change which measures the average change in price of goods and services sold by manufacturers and producers in the wholesale market during the last quarters is likely to rise 0.6% (QoQ) and 1.2% (YoY). Robust price increase received by producers of electricity supply, gas supply; and water supply, sewerage and drainage services; building construction and petroleum refining and petroleum fuel manufacturing is contributing to upward march of Producer Prices Index in past year while prices declined for specialized machinery & equipment manufacturing, motor vehicles.

Consumer Confidence Index
The Westpac-Melbourne Institute Consumer Confidence Index for Australia is expected to rise 0.6 % to 96.0 % in this month from 95.5 % in August 2017. It is gradually picking up from June after falling for four continuous months leading to June 2017. The index scores is still below 100 which means pessimists still outweigh optimists though number of optimists are rising as business investments is picking up, employment growth has become stronger, though labor hours remains week. The various forward-looking indicators are pointing to continued growth in employment over the period ahead.

Corporate profits
Corporate profits in Australia are expected to decline 3.0 % (QoQ) to 80.15 AUD Billion in second quarter ending June 2017. It will be a first quarter of decline in profits after rising for four straight quarters as profits are decreasing for: information media and telecommunications, accommodation and food, financial and insurance and other small sectors. The sectors which are contributing positively to Corporate profits in Australia are retail trade; transport, postal and warehousing , administrative services and arts and recreation. I think corporate profits will start rising by Q4 of 2017.

GDP
Australian GDP is expected to grow 0.8 % (QoQ) and 1.8 % (YoY) in second quarter ending June 2017 as growth in the economy is gradually picking up this year. The effect of decline in mining investment is diminishing. The outlook for non-mining investment has improved recently and reported business conditions are at a high level. Residential construction activity remains at a high level, but little further growth is expected. Retail sales have picked up recently, although slow growth in real wages and high levels of household debt are likely to constrain future growth in spending.

Trade Balance
Australia's trade surplus is expected to expand 5 percent to AUD 0.90 billion in July of 2017 from AUD 0.86 B in previous month of June. Exports of non-rural goods (bulk commodities & non-bulk commodities) is likely to rebound this month on back of rising shipments to china of metal ores, minerals and coal, coke and briquettes. Rise in export of transport equipment should continue while decrease in exports of services may prove a drag on trade surplus. Imports of consumption goods are also rising mainly driven by food and beverages while imports of maintenance & repair services are declining.
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