AUSTRALIA: *** Little surprising content in the RBA statement, as the bank left its cash rate unchanged at 1.50%. The Bank has stuck to its glass half full approach, and there was a lack of fresh dovish rhetoric that some were looking for, with some of the comments more positive at the margin. The Bank didn’t change its language re: mortgage rates, despite the recent out of cycle rise from Westpac or acknowledge the latest round of political upheaval/knock on effects for biz confidence. The Bank noted that the economy likely grew at an above trend rate in H118. The Bank also reiterated that the outlook for the labour market remains positive and that there should be a further lift in wages growth over time, after a little pick up recently, owing to reports of skills shortages in some areas and high vacancy rate, with a further gradual decline in unemployment still expected. 
– AUD/USD has firmed on the release, hitting a high of $0.7224, resistance noted at yesterday’s high ($0.7224), followed by the 38.2% retracement of the move from $0.7381 to $0.7166 ($0.7248). AU 3-Year Bond futures have eased 2.5 ticks and are testing 98.00.

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