RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. The RBA said the economy is expected to return to pre-Delta path in H1 2022. Leading indicators point to a strong recovery in labor market. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% Omicron variant is new source of uncertainty Household consumption is rebounding strongly The outlook for business investment has improved Economy expected to return to … Continue reading “RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly”

Australia October Trade Surplus AUD+11.22bn With Exports Lower on Iron Ore Prices

Australia posted a trade surplus of A$11.22 billion in October exceeding expectations for a surplus of A$11.0 billion. It was the smallest trade surplus since May, amid softening global demand as more countries battled with a resurgence of coronavirus infections. Follows a downwardly revised A$11.82 billion trade surplus in September (from A$12.243 billion). Exports fell 3.0% m/m or A$1.491 billion to A$43.053 billion. Goods were down 3.0% and services fell 6.0% Imports also slipped 3.0 percent on month or A$887 … Continue reading “Australia October Trade Surplus AUD+11.22bn With Exports Lower on Iron Ore Prices”

Australian Economy Shrank Less Than Expected in Q3

Australia’s GDP shrank -1.9% q/q in Q3, less than market expectations of a 2.7% decline and after 0.7% growth in Q2. This was the first contraction in the economy since Q2 2020 with the damage done from lengthy lockdowns across New South Wales, Victoria, and the Australia Capital Territory due to Covid-19.  Australian Gross Domestic Product (GDP) fell 1.9 per cent in seasonally adjusted chain volume terms in the September quarter 2021 and was up 3.9 per cent through the … Continue reading “Australian Economy Shrank Less Than Expected in Q3”

Australia Placed Well for Recovery says Goldman Sachs

Andrew Boak Goldman Sachs’ Chief Economist for Australia & New Zealand is out with a note positive on Australia’s economic recovery. He said he believed Australia in a good position for recovery extending into the end of this year and next. With the RBA focusing on wages he said he saw slow grinds expected for wage growth and inflation. Goldman noted that to see wage increases, full employment is a critical issue. The wages analysis is in line with Governor … Continue reading “Australia Placed Well for Recovery says Goldman Sachs”

Australian Employment Hit by Reopening of Victoria and NSW

Australia saw much weaker than expected employment as the reopening of the country after the Covid Lockdown was not captured in the report.   Unemployment rose to 5.2% from 4.8% expected. An even bigger miss in employment change, losing -46.3K jobs versus an expected 50K gain and prior -138K October Jobs Highlights Employment Change: -46.3K for an ugly miss indeed expected 50K, prior -138K Unemployment Rate: 5.2% expected 4.8%, prior 4.6% Full-Time Employment Change: -40.4K prior was 26.7K Part-Time Employment … Continue reading “Australian Employment Hit by Reopening of Victoria and NSW”

RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected. The RBA discontinued the target of 10bp for April 2024 Australian Government bond after 10-year Aussie bonds broke over 2% for first time since March 2019. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% 3-year bond yields target 0.10% Interest rate on new drawings under the Term Funding Facility to 0.1 per cent Interest rate on … Continue reading “RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target”

Fitch Expects Immigration Loss Due To Covid Lockdown To Weigh on Australia’s Growth

Australia growth pre-pandemic was one of the strongest in the developed world. The rapid rise in the working age population with fast net immigration accounting for over half of the expansion helped fuel the strength. Fitch believes the Covid Lockdown to weigh on the recovery GDP in the medium term.

Rio Tinto Lowers 2021 Iron Ore Shipments Forecast on Tight Western Australian Labor Market

Australian mining giant Rio Tinto Group (RIO) on Friday reduced its 2021 Pilbara iron ore shipments forecast as the COVID lockdowns, Supply crunch were further hampered by a tighter labour market in Western Australia. These have all led to a delay of the completion of a new greenfield mine at Gudai-Darri.

Rio Tinto Delays First Production From Oyu Tolgoi Copper Mine in Mongolia

Australian mining giant Rio Tinto Group(RIO)on Friday announced it is delaying first production for the Oyu Tolgoi copper mine in Mongolia by three months to January 2023. $RIO is developing the mine with Canada’s Turquoise Hill Resources (TRQ.TO) in a joint venture.

Record High Chinese Coal Futures Prices After Biggest Coal Producing Region Floods

Coal prices have risen unabatted with supply chain disruptions, China has been partiucarlt bad hot and that just got more critical. Floods closed 60 of the 682 coal mines in Shanxi province, 30% of China’s production.