The 1.2% rise by itself would not constitute a panic scenario if other economic data was pointing downwards, but the RBA now finds it self with an unemployment...

The 1.2% rise by itself would not constitute a panic scenario if other economic data was pointing downwards, but the RBA now finds it self with an unemployment rate well below 6%, rising lending and retail numbers and some positive signs coming out of the mining and resource space which has been subdued for most of the year. Its very difficult to see the RBA cutting further from here unless we see unemployment rise above 6%. For now we think rates are on hold and probably likely to rise mid next year - there will be few analysts maintaining any forecasts to cuts off the back of these numbers. The A$ in the meantime will continue to rocket towards parity in the short term. (VIEW LINK)