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According to Goldman Sachs, the improvement reported in the May NAB Business Survey is negligible in the context of May's rate cut and the fall in the AUD. Although confidence was unchanged and business conditions edged slightly higher, capital expenditure in mining was at its lowest level in 11 years. The bank reported few signs that demand was responding to the monetary stimulus delivered by the central bank over the past year. As such, Goldman Sachs forecasts unemployment to deteriorate to over 6.0% by early 2014 with a further 25 bp rate cut expected at the RBA's July meeting.


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