Asian Currencies Edge Higher as Soft US Inflation Weighs on Dollar 
Morgan Stanley Sees Fed Holding Rates as U.S. Inflation Cools 
Japan Economy Grows 1.1% in Q2 as Consumer Spending Stalls 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Gold Prices Retreat From Two-Month High as Softer Inflation Eases Fed Rate Hike Bets 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
Oil Prices Steady as Strait of Hormuz Traffic Slows Amid US-Iran Conflict 
Add as a preferred source on Google
Australia’s preliminary estimate for the first-quarter gross domestic product (GDP) is for a rise of just 0.1 percent q/q. This result continues the recent see-saw pattern in GDP growth, with growth outcomes of +0.8 percent, -0.5 percent, and +1.1 percent in Q2, Q3 and Q4 of 2016 respectively. A 0.1 percent rise for the quarter would see annual GDP growth drop to 1.5 percent, which would be the lowest rate since the September quarter 2009.
Despite the very weak retail sales data, consumer spending growth is expected to have been supported by stronger growth in spending on services and look for a solid, if unspectacular, rise of 0.6 percent q/q.
Broadly, consumer spending growth is likely to underwhelm over the next couple of years, reflecting a growing realisation by households that softer wage growth may be a more permanent state of affairs. High levels of household debt as well as a likely slowdown in house price growth are only likely to reinforce this trend.
"Our focus will be on the wages and household consumption numbers. The GDP measure of wages was surprisingly weak last quarter, and we expect a bounce, although even this would see annual growth in the wage rate remain in negative territory," ANZ Research commented in its latest report.
