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Reserve Bank of Australia seen raising cash rate to 4.60%

The preview also calls for U.S. payroll growth of about 90K in September and unemployment at 4.1%.

Reported · Written up by our desk · Central Banks

Action Forex outlined a busy macro calendar next week, highlighting expectations for U.S. consumer spending and income growth. It projects personal spending rising 0.8% in August, with income growth of 0.5%.

The outlet expects the Fed’s preferred inflation gauge, the PCE deflator, to firm in August, though it says annual BEA revisions and broader revisions should leave the recent inflation trend somewhat softer.

Action Forex also forecast U.S. labor-market data for Friday, with payroll growth moderating to about 90K in September and the unemployment rate holding steady at 4.1%. It expects the Reserve Bank of Australia to lift its Cash Rate by 25 bps to 4.60%, which it views as the terminal level.

Abroad, the preview points to Canada’s July GDP expected to be essentially flat, Eurozone inflation likely ticking higher in September, and China’s September PMI results suggesting slight improvement in manufacturing alongside subdued non-manufacturing activity.

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