The Australian economy still soft
- Australian economic growth is soft at just 2% year on year. While the economy is rebalancing, expect sub-par growth to continue.
- Ongoing sub-par growth is likely to drive the RBA to cut rates again & the $A is on its way to around $US0.60.
- Recent profit results reflect the economy, with poor resources earnings but reasonable profit growth from industrials. This is likely to remain the case.