The Aussie and Kiwi dollars are opening a bit stronger after the RBA’s hold decision yesterday was a touch more hawkish than some expected.
In our bonus deep dive interview, ANZ New Zealand Economist Andre Castaing says the RBNZ’s proposed loosening of loan to value ratio restrictions is expected to boost demand for housing later in 2024.
5 things to know
The RBA held the cash rate, as expected, but its comments were slightly more hawkish than the market expected, says ANZ Head of Australian Economics Adam Boyton.
ANZ Research still sees the RBA waiting until November before delivering the first cut, says Adam.
Markets trimmed their expectations of RBA cuts, which nudged the Australian dollar higher through the evening and into this morning.
Australian retail sales volumes per capita were down 3.5% in Q4 vs a year ago, but are expected to improve in the second half of 2024, says ANZ Australia Economist Maddy Dunk.
ANZ New Zealand Economist Henry Russell expects NZ unemployment to have risen to 4.3% in Q4 from 3.9% in Q3, but that is unlikely to be a game-changer for the RBNZ, which remains on hold.
Cheers
Bernard
PS: Catch you tomorrow with review of NZ jobs and wages data and a preview of the Reserve Bank of India’s decision on Thursday night.
