Australian Markets Weekly – The economy’s rotation and the tourist dollar

RBA watching international developments closely; far from panicking about the current state and momentum in the domestic economy with signs of the economy’s emerging rotation

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The economy’s rotation and the tourist dollar

  •  RBA watching international developments closely; far from panicking about the current state and momentum in the domestic economy with signs of the economy’s emerging rotation
  • RBA pleased with the overall improvement in Australia’s labour market, even making due allowance for the volatile monthly labour force survey
  • In this note, we examine how the tourist industry is participating in the economy’s rotation
  • Australia’s international tourism balance is improving thanks to surging visitor arrivals, benefitting especially from the step-up in the outbound Chinese visitor market
  • Signs are also emerging that Australians are tilting their holidaying somewhat towards domestic destinations, evident in airport traffic and regional SEEK job advertising trends
  • Week ahead: Thursday labour force likely on statistical grounds to spring another positive surprise. China returns after the Chinese-New Year period, the US has a swathe of data and Fed speakers, while European leaders will be meeting later this week to discuss Brexit and the refugee crisis

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