Gold surges over US$4,300/oz. Australia’s unemployment rate jumps to its highest since 2021, sending the Aussie dollar down against the Kiwi. And New Zealand dairy farmers are in line for bumper returns.
In our Deep-Dive interview, ANZ Senior Economist Matthew Galt looks at whether New Zealand’s housing market might finally turn, as the Reserve Bank plans to ease lending restrictions.
5 things to know in 5 minutes:
Gold rose 2.4% to US$4,300/oz overnight. ANZ Commodities Strategist Soni Kumari says the US Government shutdown, political problems in France and Japan, fears about Fed independence and falling US interest rates are all combining to drive the safe haven asset to record highs almost daily.
Australian employment grew 15,000 in September, slightly weaker than market expectations. But the big surprise came with the unemployment rate rising from 4.3% to 4.5%. ANZ Economist Aaron Luk says that’s the highest since 2021.
Aaron says the unemployment surprise will give the Reserve Bank of Australia something to think about.
The Aussie dollar fell 0.5% against the Kiwi to NZ$1.13 after the unemployment surprise, after several weeks of strengthening towards NZ$1.15. ANZ FX Strategist Felix Ryan says the Kiwi typically strengthens towards the end of the year.
It is spring in the Southern hemisphere, the grass is growing fast and ANZ NZ’s Agri Economist Matt Dilly says dairy farmers are looking at big payouts.
Cheers,
Bernard.
PS: Catch you next week with a look ahead to New Zealand’s third quarter inflation data.
