0202 GMT - Australian banks could be about to lose a key source of valuation support, Macquarie analysts say. Australia's unemployment rate unexpectedly rose to a four-year high of 4.3% in June, which may indicate that the tightness in the labor market is easing. The Macquarie analysts point out that overall wage growth is also moderating. The suggestion is that the scenario could hit the affordability of credit for consumers, who face rising house prices amid lower interest rates and policy support. The Macquarie analysts tell clients in a note that the banking sector's recent outperformance looks increasingly unsustainable. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

July 22, 2025 22:02 ET (02:02 GMT)

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