PIMCO on Australia - RBA more likely than not to provide additional policy support

Earlier headlines from PIMCO on China (PBOC) and Japan (BOJ) are here

On Australia and the RBA:

• Growth in China continues to moderate ... rebalance growth away from commodities-intensive infrastructure
• Global supply of bulk commodities such as iron ore is booming
• Soft prices for Australia's commodity exports look set to continue in 2016, and consequently terms of trade and national income growth will likely remain subdued
• Declining mining investment will continue to weigh on domestic demand.
• Housing construction will likely become a less powerful force going forward
• Household balance sheets remain stretched
• We certainly expect the housing market tailwind to subside

In short, we continue to see a very gradual and sluggish rebalance away from the mining sector, with the Reserve Bank of Australia more likely than not to provide additional policy support.

A useful summary

There is (much) more from PIMCO at the full text (h/t and thanks to LiveSquawk)