The RBA is expected to hold the cash rate at 4.35% in its last decision of the year this afternoon, albeit with a hawkish tone and after considering a hike.
In our bonus deep-dive interview, ANZ Senior Commodities Strategist Daniel Hynes explains why he’s raised his iron ore price forecasts to over US$100/tonne, despite weak demand for steel from China’s apartment developers.
5 things to know
Stocks and bonds retreated from their highs overnight, as did gold. Daniel explains why the gold price hit a record high US$2,151/oz yesterday. It’s at US$2,041/oz at 5am Sydney/Melbourne time.
ANZ’s Head of Australian Economics Adam Boyton sees the RBA holding hawkishly later today, but only after considering a hike.
Australia’s business indicators of profits, stocks and wages yesterday were mixed ahead of tomorrow’s GDP figures.
The ANZ Indeed Job Ads series showed job ads fell last month by the most in five years, says ANZ Australia Economist Maddy Dunk.
Weak US factory orders data overnight will reinforce the Fed’s view its rate hikes are slowing investment spending, in line with a soft landing, says ANZ’s Head of G3 Economics Brian Martin.
Bernard
PS: Look out tomorrow for analysis of the RBA’s last rates decision for 2023.
