Latest news with #ReserveBankofAustralia
Business Recorder
16 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.
Mint
20 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)
Herald Sun
a day ago
- Business
- Herald Sun
End of financial year review: Does your home loan measure up? - realestate.com.au
The end of a financial year often brings a natural focus on finances — especially if you are investing in property as you prepare for tax returns. As one of your biggest financial commitments, it's the perfect time to review your home loan to ensure it meets your goals for the financial year ahead. Some borrowers have already kicked off their reviews, with the latest Mortgage Choice Home Loan Report revealing the value of refinance loans was up 30 per cent year-on-year over the March quarter. It could be worth reviewing your home loan. MORE: Mystery buyer of Packer's $80m pad revealed So, is it worth finding out if your home or investment loan is still giving you the best bang for your buck? The short answer is of course yes. Your reasons for reviewing your loan will be different to your neighbours', but it's worth taking time to review your loan to ensure it's working for you. Reach out to a mortgage broker who can compare your loan against what's in the market to see if you can access a sharper rate, an improved loan structure, or help you understand if you can tap into your equity. This end of financial year, ask yourself these four questions. Can I access a better rate? The Reserve Bank of Australia has already delivered two rate cuts this year, and the market is predicting a third cut on 8 July. As we see more cuts to the cash rate, competition will ramp up as some lenders pass on the savings in full, and others don't. A couple discussing their home loan with a mortgage broker. Picture: iStock. MORE: Black Stump demise exposed, menu emerges Some lenders are offering great rates to attract new customers, so if your home loan rate doesn't start with a 5, you might be paying too much. Can I claim tax deductions? If you have a mortgage on an investment property, now is the perfect time to take stock of the interest you paid, as well as any expenses related to property maintenance or management as you may be able to claim tax deductions relating to these expenses on your next return. Will a better loan structure offer me any benefits? Refinancing could help you access different loan features or a structure that better suits your needs, such as an offset account or redraw facility. Am I rolling off a fixed rate? If your fixed-rate term is coming to an end soon, it's the right time to shop around. When your fixed term ends, your lender will automatically move you onto a standard variable rate loan, but it may not be the most competitive on offer. Can I access equity? Property values continue to rise, with national values up 4.12 per cent year-on-year according to the May PropTrack Home Price Index. If your property has increased in value while you've had your home loan, you may have equity built up that could help you negotiate a lower rate or even put you in a position to upgrade your home or purchase another property.
Business Recorder
2 days ago
- Business
- Business Recorder
Australia, NZ dollars take collateral damage from Mideast conflict
SYDNEY: The Australian and New Zealand dollars slid on Thursday as concerns the United States was inching closer to striking Iran dampened risk sentiment, while domestic data was too mixed to offer much direction. The Aussie, often used as a proxy for risk assets, lost 0.4% to $0.6482, reversing its overnight bounce from $0.6470. Resistance lies at the recent seven-month top of $0.6552, with major support at $0.6456 and $0.6408. The kiwi dollar eased 0.7% to $0.5988, breaking support at $0.5996 and threatening a retreat to $0.5944. In Australia, data showed employment fell by 2,500 in May, when analysts had looked for a rise of 22,500. Australia, New Zealand dollars attempt to steady after sell-off, Fed decision looms The details were stronger with the jobless rate steady at 4.1%, while full-time jobs and hours worked both jumped. Markets slightly trimmed the chance of a July rate cut from the Reserve Bank of Australia to 64%, from 70% before the data. A quarter-point reduction in the 3.85% cash rate is still fully priced for August and rates are seen bottoming between 2.85% and 3.10% by early next year. 'In our view, the labour market is no longer 'tight' and isn't contributing to wage pressures or inflation,' said Andrew Boak, an economist at Goldman Sachs. 'We continue to expect the RBA to cut 25bp at its next meeting in July, followed by cuts in August and November to a terminal rate of 3.1%.' In New Zealand, figures showed the economy grew 0.8% in the first quarter, just pipping forecasts of 0.7%, thanks mainly to a rebound in consumer spending after a couple of tough years. That was twice the 0.4% gain projected by the Reserve Bank of New Zealand and reinforced the case against a rate cut in July, which is priced at just 17%. 'With the economy regaining its footing sooner than expected after last year's sharp downturn, we continue to expect that the RBNZ will take the opportunity to pause and assess the situation at its July review,' said Michael Gordon, a senior economist at Westpac. The market implies around a 60% chance of a quarter-point cut to 3.0% in August and is fully priced by November, though that is seen as the end of the cycle.
Sky News AU
2 days ago
- Business
- Sky News AU
Unemployment rate remains at 4.1 per cent for three consecutive months as markets continue to favour July cash rate cut
The unemployment rate has remained at 4.1 per cent for three months in a row as it continues to sit near historic lows since the nation came out of the Covid-19 pandemic. The data is critical for the Reserve Bank of Australia which will closely examine the unemployment rate ahead of its July cash rate decision when it is tipped to deliver mortgage holders more financial relief. Data from the Australian Bureau of Statistics showed employment fell by 2,000 during the month but remained up 2.3 per cent compared to May 2024. The participation rate remained at 67 per cent while the employment to population rate was steady at 64.3 per cent for May. EY Oceania chief economist Cherelle Murphy told Sky News the data made the case for a July rate cut as it showed Australia's labour market continued to be strong and there was little risk wages would be pushed up at a time when productivity remained low. 'Overall, the RBA will be pretty happy with this,' Ms Murphy said after the data was released. 'The economy really warrants another rate cut and that's because … both business investment and private consumption is running at fairly weak rates at the moment. 'The stance of monetary policy right now is restrictive ... it's actually slowing the economy down and that is not really appropriate for an economy where inflation is back under control and the private sectors not really spending.' Following the release of the unemployment data, the odds of a rate cut when the Reserve Bank of Australia meets in July has dropped 1.5 per cent to 66 per cent. Sky News' Business Editor Ross Greenwood said the shift was 'marginal' and the markets were 'not surprised' by the consistent unemployment rate. 'The odds are still in favour of the Reserve Bank cutting interest rates when they meet in just a little under a month's time,' Greenwood said. The RBA has cut rates twice in 2025 and is likely to deliver further cuts beyond the July call. It will also examine trimmed mean inflation – the middle 70 per cent of price changes in the consumer price index - which fell back into the RBA's 2-3 per cent target band in the March quarter. This was the first time since 2021 trimmed mean inflation was in the RBA's target band.
