AUD Review

Quotes from RBC Capital Markets

• GDP rose 0.5%q/q, 2.5%y/y in Q4, broadly as both the market and RBA expected.

• The contours of the data were very much in line with recent themes; the influence of lower rates was evident across various data, whilst export growth continues apace. Against this, investment and public demand continue to drag.

• The net result remains sub-potential growth, and given the structural nature of most of these themes, more of the same can be expected. Our economists maintain their call for the next RBA rate cut to come in May. January retail sales (tonight) are expected to rise 0.4% m/m.