Australian Markets Weekly: 6 June 2016

Is any week not a relatively busy or important one? This week, the key focus in Australia will be on the Reserve Bank’s June Board meeting

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What are company profit trends telling us about the Australian economy?

  • Company profits reveal the continuing sharp hit to mining company profits and profits in related sectors. The Australian economy is continuing to re-calibrate to post-commodity boom levels of activity. While mining profits are clearly a big drag, the non-mining recovery is impressive, with non-mining GDP growth currently running in the 3-4% region.
  • Tomorrow’s RBA Board meeting text should be watched closely for any reintroduction of an explicit easing bias – as occurred in March 2015 following the easing in February 2015
  • Significant market moves in the $A and Australian rates due to softer than expected US May non-farm payrolls data.

For further analysis download the full report

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