Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.

The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”

Australia Trade Surplus Widened in November to $13.2 billion With Iron Ore Exports Higher 7.9%

Australia posted a trade surplus of A$13.2 billion in November exceeding expectations for a surplus of A$10.5 billion following the A$12.217 billion surplus in October and $12.5 billion in September. The Australian Bureau of Statistics reported exports dipping 0.4 per cent and imports falling 1.5 per cent over the month. The report was amid softening global demand as China battled with a resurgence of coronavirus infections. Australia’s’ leading exports were Metal ores and minerals exports (iron ore) $14,502 billion up … Continue reading “Australia Trade Surplus Widened in November to $13.2 billion With Iron Ore Exports Higher 7.9%”

Australian Consumer Confidence Jumps as Household Inflation Expectations Eased

Weekly Consumer confidence climbed 4.9 points last week to 87.4, starting the new year with the first increase since 2018, ANZ-Roy Morgan consumer survey showed on Tuesday. Inflation expectations dropped from the end of 2022, falling 0.9% to 5%. Its moving average for the last four releases fell 0.3 percentage points to 5.7 per cent. Confidence is still well below the neutral level (100) and the long-run average of 111.7. Highlights Adelaide Timbrell, a senior economist at ANZ. Source: ANZ … Continue reading “Australian Consumer Confidence Jumps as Household Inflation Expectations Eased”

China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM

Australia’s economy will get a big boost from the end to China’s zero-Covid policy over the next two years JPMorgan said in a note Saturday. JPMorgan’s chief investment strategist Tom Kennedy said “The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports.” JPM sees a full recovery in Australia’s tourism adding 0.5% to its gross domestic product and the return of international students from China will … Continue reading “China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM”

RBA Raises Rates to Ten Year High 3.10%, says Inflation in Australia Too High

The Reserve Bank of Australia raised interest rates for the eighth consecutive time on Tuesday to the highest level since November 2012. The move to raise 25bp rate hike took the cash rate to 3.10% which was in line with the consensus. The RBA cash rate has been increased substantially in a short period of time. Board expects to increase interest rates further over the period ahead. The RBA said the size and timing of future increases determined by data … Continue reading “RBA Raises Rates to Ten Year High 3.10%, says Inflation in Australia Too High”

Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion

Australia already the world’s number one exporter in iron ore, natural gas and coal is set to see its metal exports essential to the global energy transition from fossil fuels double in just over a year to $33 billion. These metals include copper, nickel and lithium. The venerable Resources and Energy Quarterly from the Australian Office of the Chief Economist’s outlook for global commodity prices, demand and supply sees a dramatic surge in Australian exports critical to energy transition.  Australia’s resource … Continue reading “Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion”

Reserve Bank of New Zealand Raise Rates by 75bp to 4.25% to Highest Since January 2009

The Reserve Bank of New Zealand aggressive hiking cycle continues. It raised its Official Cash Rate by another 75 bps to 4.25%, as expected. The RBNZ says its committee debated a +75 or +100bp hike. The RBNZ was the first central bank in a developed money market to raise its cash rate above the neutral level. The bank’s committee members agreed monetary conditions needed to continue to tighten until inflation back in target range. The RBNZ saw the terminal official … Continue reading “Reserve Bank of New Zealand Raise Rates by 75bp to 4.25% to Highest Since January 2009”

Australian Unemployment Falls to Lowest Rate in Almost 50 Years

Australia saw stronger than expected employment in October driving unemployment to 3.4 per cent, the equal lowest rate in almost 50 years, according to the latest jobs data from the Australian Bureau of Statistics. Employment grew by 32,200 well ahead of consensus for 15,000 to a new record high of 13.62 million. Australia has very tight labor market conditions, demand is being met by adjusting hours. The latest jobs report followed yesterday’s September quarter wages figures showed a marked uptick … Continue reading “Australian Unemployment Falls to Lowest Rate in Almost 50 Years”

RBA Raises Rates to Nine Year High 2.85%

The Reserve Bank of Australia raised interest rates for the seventh consecutive time on Tuesday to the highest level since early 2013. The move to raise 25bp rate hike took the cash rate to 2.85% which was in line with the consensus, though not unanimous. The RBA cash rate has been increased substantially in a short period of time. On an $800,000 mortgage, the rise will lift monthly repayments by $122 to almost $4300. Board expects to increase interest rates … Continue reading “RBA Raises Rates to Nine Year High 2.85%”

Australian Annual Inflation Highest in Over 32 Years

Australia posted the highest annual inflation rate since Q2 1990 of 7.3% in Q3 of 2022 from 6.1% in Q2, above market forecasts of 7.0%. Prices were boosted by higher prices for new dwelling construction, automotive fuel, and food. The RBA Trimmed Mean CPI jumped 6.1% yoy, the fastest pace since the series began in 2003, exceeding the midpoint of the RBA’s 2-3% target. Quarter-on-quarter, the index gained 1.8%. The Reserve Bank of Australia raised interest rates for the sixth … Continue reading “Australian Annual Inflation Highest in Over 32 Years”