Australia: Consumer sentiment picked up in October - TDS

Westpac consumer sentiment of Australian economy picked up a little to 101.5 in October, notes the research team at TD Securities.

Key Quotes

“With an upbeat labour market and positive RBA there could be another modest tick higher. Far more importantly for the RBA and the markets, Q3 Wage Price Index is finally released.”

“With the 3.5% jump in the minimum wage offset by a trimming of penalty rates, it will be a struggle to see wages growth surprise to the upside past our forecast of +0.6%/q and 2.3%/y.”

“An upside surprise would offset recent disappointment in retail sales and CPI and lift pricing for a rate hike next year.”