There are several pieces of news to follow.
The RBA kept interest rates on hold at 2.5% on Tuesday. The RBA commented that the exchange rate remained high by historical standards implying they thought it would fall.
Consumer confidence moved up, just a little, but is still at 1990 recession levels.
The ABS reported that GDP rose 1.1% in the first three months of the year, and annual growth was at 3.5%. This is higher than expected but the government still expect the rate of growth this year to be 2.5% which suggests a torrid nine months ahead.
The Fair Work Commission has agreed a 3% rise in the minimum wage. This will add $18.70 to the weekly wage of a full-time worker.
Below are two articles that cover some of these items. Please read them for details.
Note that the rise in the minimum wage is a supply side factor and will influence the Aggregate Supply curve by moving it to the left. Also take careful not of the Fair Work Commission's view on equity in terms of income distribution in Australia.
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