Latest news with #RBA
Business Recorder
12 hours ago
- Business
- Business Recorder
Australia, NZ dollars steady after setback, geopolitics a drag
SYDNEY: The Australian and New Zealand dollars found some footing on Friday as the Israel-Iran conflict continued but did not escalate to US involvement, offering a welcome reprieve to risk assets. Markets were left in geopolitical limbo after President Donald Trump put off a decision on whether to strike Iran for two weeks, while the two sides traded more missile attacks. Still, the lack of an immediate US attack was enough for the Aussie to edge up 0.1% to $0.6487, having dived as deep as $0.6446 overnight. Support lies at $0.6408 with resistance at the recent seven-month high of $0.6552. The kiwi dollar was hanging on at $0.6000, having slid as far as $0.5959 on Thursday as a break of support sparked stop-loss selling. That was well off the eight-month top of $0.6088 hit early in the week and risked a retreat to $0.5926. A mixed Australian jobs report had little impact on market expectations for a quarter-point rate cut from the Reserve Bank of Australia (RBA) in July, which is priced at a 75% chance. 'We remain comfortable with our view that the RBA's next rate cut is most likely to occur in August,' Westpac analysts said in a note. 'The RBA have made it clear they want to adjust policy in a cautious and predictable manner, warranting another quarterly reading on inflation and time to assess global conditions.' Inflation figures for the second quarter are not due until late July. Across the Tasman, economic growth rebounded a little faster than expected in the first quarter, but business investment was disappointingly weak. Markets still see scant chance of the Reserve Bank of New Zealand cutting its 3.25% rate in July, though the probability of an August move is above 60%. Australia, NZ dollars take collateral damage from Mideast conflict 'We now expect the RBNZ to pause the easing cycle at July's meeting, instead of cutting,' said Andrew Boak, an economist at Goldman Sachs. However, given the large amount of slack in the labour market, Boak saw more scope on the downside for rates and forecast three more quarter-point easings to 2.5%, well below the market's 3.0% floor.
Yahoo
13 hours ago
- Business
- Yahoo
Major bank deals double blow for Aussie savers with interest rate cut: 'Disappointing'
NAB has cut the interest rate on one of its popular savings accounts today. It's a double blow for customers, after the major bank already cut rates following the Reserve Bank of Australia's (RBA) cash rate cut last month. NAB has cut its Reward Saver account by 0.05 per cent, bringing the new maximum rate down to 4.35 per cent. It follows a 0.25 per cent cut on May 23, bringing the total cut to 0.30 per cent. While the bank's move is a small one, it's a sign of a bigger trend when it comes to falling savings rates. Canstar research found other banks were cutting rates above and beyond the RBA cuts, including ING and Rabobank. RELATED RBA urged to cut interest rates in weeks as unemployment 'blow out' fears escalate Centrelink age pension changes coming into effect from July 1 Centrelink rule change gives more Aussies access to $5,000 cash boost 'It shows that banks don't need a cash rate change to move the goalposts for customers. It's a small move but a disappointing one nevertheless,' Canstar data insights director Sally Tindall said. The average savings rate on its database is currently 3.07 per cent. There are just six banks still offering an ongoing savings rate of 5 per cent or more. 'That said, if the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter,' Tindall said. NAB expects the RBA will cut interest rates again in July, August and November, to bring the cash rate down to 3.10 per cent. CBA, Westpac and ANZ think the next cut won't be until August, with Westpac recently doubling its forecast to expect cuts in August, November, February and May. CBA and ANZ expect there will only be two more cuts in this cycle. BOQ Future Saver for 14 to 35 year olds offers the highest ongoing savings account rate at 5.10 per cent, according to Canstar. That's despite the bank cutting the maximum rate yesterday from 5.25 to 5.10 per cent. Customers have to deposit $1,000 and make at least five transactions in a linked bank account to get this maximum rate. Other accounts currently offering 5 per cent savings rates are BCU Bank Boss Saver, P&N Bank Savvy Saver, Westpac Life Spend&Save, Move Bank Growth Saver and ING Savings Maximiser. Term deposit rates have also been falling, with more than 50 banks cutting at least one rate in the last month, including all of the Big Four banks. 'Term deposit rates are, unsurprisingly, falling faster than at-call savings rates, as banks continue to bake in further cash rate cuts into the fixed rate term,' Tindall said. 'If you're someone who likes the certainty and security a term deposit can bring, time is of the essence as these rates are likely to keep on falling in the weeks ahead.'Error in retrieving data Sign in to access your portfolio Error in retrieving data
Mint
16 hours ago
- Business
- Mint
Australia, NZ dollars steady after setback, geopolitics a drag
SYDNEY, June 20 (Reuters) - The Australian and New Zealand dollars found some footing on Friday as the Israel-Iran conflict continued but did not escalate to U.S. involvement, offering a welcome reprieve to risk assets. Markets were left in geopolitical limbo after President Donald Trump put off a decision on whether to strike Iran for two weeks, while the two sides traded more missile attacks. Still, the lack of an immediate U.S. attack was enough for the Aussie to edge up 0.1% to $0.6487, having dived as deep as $0.6446 overnight. Support lies at $0.6408 with resistance at the recent seven-month high of $0.6552. The kiwi dollar was hanging on at $0.6000, having slid as far as $0.5959 on Thursday as a break of support sparked stop-loss selling. That was well off the eight-month top of $0.6088 hit early in the week and risked a retreat to $0.5926. A mixed Australian jobs report had little impact on market expectations for a quarter-point rate cut from the Reserve Bank of Australia (RBA) in July, which is priced at a 75% chance. "We remain comfortable with our view that the RBA's next rate cut is most likely to occur in August," Westpac analysts said in a note. "The RBA have made it clear they want to adjust policy in a cautious and predictable manner, warranting another quarterly reading on inflation and time to assess global conditions." Inflation figures for the second quarter are not due until late July. Across the Tasman, economic growth rebounded a little faster than expected in the first quarter, but business investment was disappointingly weak. Markets still see scant chance of the Reserve Bank of New Zealand cutting its 3.25% rate in July, though the probability of an August move is above 60%. "We now expect the RBNZ to pause the easing cycle at July's meeting, instead of cutting," said Andrew Boak, an economist at Goldman Sachs. However, given the large amount of slack in the labour market, Boak saw more scope on the downside for rates and forecast three more quarter-point easings to 2.5%, well below the market's 3.0% floor. (Reporting by Wayne Cole; Editing by Jamie Freed)
Time Business News
17 hours ago
- Business
- Time Business News
ASX Today: What's Moving the Markets and Why It Matters
Every trading day, the ASX today reflects the pulse of the Australian economy. The ups and downs of the market are shaped by a complex web of factors, from global events and corporate earnings to investor sentiment and policy changes. But for investors and professionals alike, understanding what's driving the market is essential to making informed decisions. In this article, we'll unpack what's influencing the ASX 200 list, explore the latest stock market news, and explain why these movements matter for both short-term traders and long-term investors. The Australian Securities Exchange (ASX) is home to more than 2,000 listed companies and plays a pivotal role in the Asia-Pacific financial landscape. Each day, the ASX index — particularly the ASX 200 — offers a real-time snapshot of market performance, investor confidence, and economic trends. As of today, several forces are influencing movements across key sectors. The major players include global market sentiment, commodity price fluctuations, earnings reports, and domestic policy announcements. Keeping an eye on the ASX today allows investors to respond proactively rather than reactively. 1. Global Economic Sentiment International markets remain a powerful force on the ASX. The overnight performance of US and European exchanges often sets the tone for the Australian open. If Wall Street rallies on strong jobs data or earnings results, local investors tend to follow suit. Conversely, concerns about inflation, interest rates, or geopolitical instability can dampen local market confidence. 2. Commodities and Resources Australia's economy is heavily influenced by resource exports. Today, iron ore and lithium prices are drawing attention. Strong demand from China continues to buoy miners like BHP, Rio Tinto, and Fortescue Metals. Investors tracking stock market news will notice that shifts in commodity prices often translate quickly into ASX performance, particularly within the materials and energy sectors. 3. Earnings Season Updates Corporate earnings remain one of the biggest drivers of short-term market movements. Companies reporting better-than-expected profits typically see a share price boost, while disappointing results can lead to a swift sell-off. Today's earnings highlights include major retail and financial sector players, and their performance is shaping broader sector sentiment. 4. RBA and Interest Rate Expectations The Reserve Bank of Australia (RBA) plays a key role in shaping market expectations. While the official cash rate hasn't moved this month, speculation continues about future hikes or cuts based on inflation data and economic forecasts. This directly affects bank stocks and consumer discretionary companies, which are sensitive to borrowing costs and household spending. Despite global headwinds, tech stocks on the ASX have shown pockets of resilience. Today's gains in this sector are being driven by optimism around AI applications and cybersecurity investments. However, volatility remains high, and staying updated with accurate Australian finance news is vital for understanding the risks and opportunities. – Healthcare ASX-listed healthcare giants such as CSL and Cochlear remain defensive favourites. Amid global uncertainty, investors are looking for stability, and today's activity in this sector suggests continued confidence in long-term fundamentals. – Financials The big four banks are steady performers today, supported by robust earnings reports and low default rates. However, analysts are closely watching any guidance related to mortgage activity and provisions for loan losses. Understanding the forces behind the ASX today can help investors rebalance their portfolios. For instance, a surge in commodities might prompt a reallocation towards mining stocks, while signals of rising rates could lead to caution in interest-rate-sensitive sectors. – Opportunity Timing Short-term traders look for daily volatility to generate returns. Today's activity in energy and tech presents such opportunities, but only for those equipped with timely stock market news. – Economic Insight Daily ASX movements don't just reflect investor behaviour; they also mirror broader economic health. A strong day on the ASX often points to optimism about Australia's growth prospects, consumer confidence, and business resilience. In today's digital age, it's easy to get overwhelmed by headlines and commentary. That's why accessing reliable, independent, and analytical Australian finance news is essential. Platforms like FN Arena deliver curated insights, backed by data and expert commentary, helping investors separate signal from noise. By staying informed through credible financial news sources, you gain the tools to make rational, well-timed decisions — rather than being swayed by market noise or speculation. The ASX today is more than just numbers on a screen. It's a dynamic reflection of investor sentiment, economic indicators, and sectoral shifts. Whether you're a self-managed super fund trustee, a day trader, or someone managing long-term wealth, understanding what moves the markets — and why — can make all the difference. Staying on top of the latest stock market news and broader Australian finance news helps sharpen your strategy, build your confidence, and ultimately grow your financial success. TIME BUSINESS NEWS
Yahoo
19 hours ago
- Business
- Yahoo
RBA urged to cut interest rates in weeks as unemployment 'blow out' fears escalate
An economist believes the Reserve Bank of Australia (RBA) could have even more reason to cut interest rates next month after employment data was released this week. While the unemployment rate remained steady at 4.1 per cent, 2,500 fewer Aussies were in a job in May compared with April. That followed two months of strong job growth, especially when 89,000 people joined the workforce in April alone. KPMG chief economist Brendan Rynne thinks this strengthens the chance homeowners will get another 0.25 basis point reduction in the cash rate in early July. "At some point - and the likelihood is it will be sooner rather than later - this run of positive outcomes is likely to stop, as non-market sector employment growth in aged care, health care and public sector services slows," he said. Westpac doubles RBA interest rate cut forecast in $350 call for homeowners Centrelink age pension changes coming into effect from July 1 $1,000 ATO school fees tax deduction that Aussies don't realise they can claim Rynne said the private sector won't be strong enough to cope if the public sector slows, and we could soon see unemployment figures "blowing out" in the future. The 2,500 fewer Aussies in a job was far below the 25,000 increase that was expected for May. However, the 4.1 per cent unemployment rate is still below the RBA's expectations of rising to 4.3 per cent this we've already had two rate cuts so far this year, further reductions could be needed as government spending reduces and the economy continues to lag. "This means that the upcoming RBA decision is increasingly important," Rynne said. "The contractionary cash rate settings have done their job from an inflation perspective, despite the likelihood of a bounce in headline inflation as government rebates drop off and recent oil price surges feed their way into the system. "[The] labour force data should be telling the RBA to get ahead of the curve and drop the cash rate by 25 basis points at the next meeting if it wants to balance its dual mandate obligations." The ASX's Rate Cut Tracker analyses market data to assess this very question. Since June 3, this tracker has ascribed an above 80 per cent chance, with three days even seeing an 89 per cent chance. However, June 19 saw that likelihood dip down to 78 per cent. NAB is the only of the Big Four banks predicting a rate cut could come after the RBA's July 7-8 meeting. Commonwealth Bank (CBA), ANZ, and Westpac all believe the next round of rate relief will arrive at the August meeting. CBA and ANZ have predicted only two more cuts remain in 2025 and early 2026. NAB has forecasted three, and Westpac recently doubled its prediction to four cuts. 'If Westpac's forecast comes to fruition and there are four more RBA cuts through to mid-next year, someone with a $600,000 loan could potentially see their monthly repayments drop by almost $350 a month," Canstar data insights director Sally Tindall said. 'This would be a huge relief for households under pressure; however, borrowers should remember this is a forecast, rather than a given." Economist and Yahoo Finance contributor Stephen Koukoulas is sticking to his prediction of a July rate cut. He said the overall unemployment rate had actually been fairly steady in recent months, but it was other factors that would likely see the Board provide more mortgage relief. "The economy is still very subdued, still very weak, and that's an important thing that the RBA is going to be considering," he said. "The global economic conditions and geopolitical issues are clearly negative for our economy."Error in retrieving data Sign in to access your portfolio Error in retrieving data
