Global markets are flat ahead of Fed minutes. The RBA board discussed a rate hike more than was thought. Aussie renters feel more confident after the Budget. There are rate decisions today in New Zealand and Indonesia.
In our bonus deep dive interview, ANZ Senior Commodity Strategist Daniel Hynes looks at why global oil demand has been dragged down recently. One reason is Americans are driving less.
5 things to know:
Global markets were broadly flat with traders circumspect ahead of Fed minutes tonight. RBA minutes yesterday indicated the hurdle for further rate hikes is getting higher, says ANZ Head of Australian Economics Adam Boyton.
New Zealand’s Reserve Bank is widely expected to keep its key policy rate on hold at 5.5% today. What is less certain is how its commentary on inflation might evolve, says ANZ New Zealand Chief Economist Sharon Zollner.
Bank Indonesia also has a rate decision today. It hiked last month to 6.25% to support a weakening currency. ANZ Economist Krystal Tan expects it to hold this time around.
Australian consumer confidence rose 1.8 points last week, with short term confidence, current financial conditions and the ‘time to buy a major item’ measures all lifting. ANZ Economist Maddy Dunk says the rise was driven by higher confidence among renters.
The copper price this week hit a new record high above US$11,000 a tonne. ANZ Senior Commodities Strategist Daniel Hynes says the price has been pushed up by an influx of investor money.
Cheers
Bernard
PS: Catch you tomorrow with reaction to today’s Reserve Bank of New Zealand rate decision.
