Separate report on Anz job advertisements showed fall in March for the first time in nine months, as both online and newspaper vacancies declined. ANZ said ads were down 1.4% month on month, with internet advertising off 1.3% and newspapers down 3.6%. ANZ chief economist Warren Hogan said growth rates in jobs advertising may have peaked.
However, the focus of the session, on RBA interest rate decision and the following Statement. As it was largely expected RBA left its interest rates unchanged in April at 2.25%. However it was noted that further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target."The Board will continue to assess the case for such action at forthcoming meetings."
As for exchange rates it was once again repeated that despite recent decline in Aussie "further depreciation seems likely, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."
On Friday, from Australia Home Loans figures were released. Australian Home Loans rose by 1.2%, in seasonally adjusted terms, missing forecasts on 3.0% incline. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.8%. Owner occupied housing commitments rose 1.0% and investment housing commitments rose 0.4%.
However, more important for the markets was China's CPI and PPI data. The consumer price index (CPI) rose 1.4% on year, above expectations of a 1.3% and following a 1.4% rise in February. A plunge in oil prices, weak consumption and a slowing property sector have driven prices lower in recent months, even as China's economy braces for slower growth this year.
Wholesale prices, or the producer price index (PPI), fell 4.6% in March, better than the average forecast of a 4.8% decline, and after dropping 4.8% in February. Beijing last month set a growth target of around 7% for this year. China's economy expanded 7.4% in 2014, its slowest pace in 24 years.
This week markets will be looking at:
NAB Business Confidence (Tuesday 3:30)
Westpac Consumer Sentiment (Wednesday 2:30)
China's GDP (Wednesday 4:00)
China's Industrial Production (Wednesday 4:00)
Employment Change/Unemployment Rate (Thursday 3:30)
