Aussie recovers after RBA, NZ dollar hits 3-month peak

All eyes are set on the Reserve Bank of Australia (RBA) which will release its monthly policy statement at 04:30 GMT.

Keeping the cash rate unchanged for a tenth consecutive month, Reserve Bank Governor Philip Lowe again highlighted concerns about weak wages growth and a patchy housing market.

"As long as the RBA can attribute quarter-to-quarter volatility in GDP outcomes to unusual weather - higher-than-is-usual rainfall in eastern Australia in the first quarter, Cyclone Debbie in the second quarter - RBA neutrality is likely to persist for some time yet", said JPMorgan rates strategist Sally Auld. Net exports likely to have subtracted 0.7ppt from Q1 GDP growth.

The cash rate has been on hold for 10 consecutive months since August a year ago, when the RBA slashed rates to combat weaker-than-expected inflation.

"Slow growth in real wages is restraining growth in household consumption", he said.

The Australian dollar rose, buying 74.90 U.S. cents at 2:58pm in Sydney compared with 74.74 United States cents prior to the decision.

Wide variations in the housing market have also contributed to uncertainty in the economy.

Nomura admits part in Goldman Venezuelan bond deal
US officials also said Venezuela's government may not be able to depend much longer on deals like the one with Goldman Sachs. Goldman Sachs is continuing to be the focus of Venezuelan anger - at least for critics of the country's president.

Red-faced Basilashvili has no advice for Nadal opponents
The Spaniard has now contested 100 best-of-five set matches on clay, winning a remarkable 98 times. The Spaniard had already received treatment at the end of the first set.

Ontario to raise minimum wage and update labour laws, premier says
In 2016, the median hourly wage was $13 for part-time workers and $24.73 for full-time workers. It will rise, as scheduled, with inflation from $11.40 now to $11.60 in October.

"[House] prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease", Dr Lowe said. Inflation is forecast to increase gradually as the economy strengthens.

The surging prices are widely seen as being behind the RBA's decision to hold off on further rate cuts owing to worries it would stoke more debt-funded speculation and push the cost of housing even higher.

"If anything, economic performance and risks still suggest there should be an easing bias and property markets/debt accumulation suggest a tightening one", Mr Joiner said.

All 24 economists polled by Bloomberg expect the cash rate to remain at 1.50%, with financial markets ascribing a next-to-nothing chance of a move in either direction.

"They are going to overlook the slowdown in GDP as a temporary blip".

As far as consumer prices go, the central bank's expectations are largely being met. Headline inflation returned to the bottom end of the RBA's 2% to 3% target in the first three months of the year after spending nine quarters below it, but the key core measure is yet to catch up.

Paul Dales, chief Australia and New Zealand economist at Capital Economics, downgraded his GDP forecast for Australia to a 0.5 percent quarter-on-quarter contraction.


Popular
  • Local law enforcement raises money for Special Olympics with Torch Run

    Local law enforcement raises money for Special Olympics with Torch Run

    The official send-off for Special Olympics athletes from the Topeka area will be at 8 a.m. Friday in the east parking lot of TARC, 2701 S.W.

    Gunshots and explosions at Philippine mall

    The Philippines has been grappling with incidents of terrorism, especially on the southern island of Mindanao . Several people were seen injured, but police and Resorts World management have yet to give details.
    Bella Hadid suffers wardrobe malfunction at Cannes Film Festival

    Bella Hadid suffers wardrobe malfunction at Cannes Film Festival

    The star of the Blurred Lines video and Gone Girl wasn't the only one who made a statement with a barely-there appearance. Yesterday, the handsome Jessica Chastain (member of the jury) arrived black glasses on the nose and smile to the lips.
  • Man arrested in theft of Portland train victim's ring

    Man arrested in theft of Portland train victim's ring

    Taliesin Myrddin Namkai Meche, 23, also died in the attack, while Micah Fletcher, 21, suffered non-life-threatening injuries. George Tschaggeny was wearing Ricky Best's ring when officers arrested him Friday morning beneath an overpass, Sgt.
    Antonio Conte to send Tammy Abraham on loan to Newcastle

    Antonio Conte to send Tammy Abraham on loan to Newcastle

    Chelsea youngster Tammy Abraham is closing in on a season-long loan move to Newcastle United, according to the Daily Mail . And for a loan deal, it is certainly a risk that Newcastle will have no qualms about taking.

    Bombing in diplomatic area of Kabul kills 90, wounds scores

    The powerful explosion rocked the neighbourhood, which is considered the city's safest, during the peak of morning rush hour. France's foreign Minister Jean-Yves Le Drian says the French Embassy in Kabul suffered material damage in the auto bombing.
  • Corbyn: It's a shame PM has not joined in head-to-head debate

    Corbyn: It's a shame PM has not joined in head-to-head debate

    He said: "If we did use it, millions are going to die". The Labour leader responded: 'I urge you to read it. Ask anyone in the British army at the time ...
    EU, China to unite on global warming after Trump withdrawal

    EU, China to unite on global warming after Trump withdrawal

    A day after Trump rejected the Paris agreement, the European Union and Chinese leaders repeated their support for the deal. It will be widely seen as a rebuff to the United States , as President Trump deliberates on withdrawal from the accord.

    Ivanka Trump, Jared Kushner taking 'heads down' approach

    But Trump immediately railed against administration leaks in a flurry of tweets Sunday, calling them "fabricated lies". Congressional Democrats have demanded to hear directly from Kushner about the allegations against him, CBS reported .
  • Trump's tweeted typo covfefe becoming vanity license plates

    Trump's tweeted typo covfefe becoming vanity license plates

    Jimmy Kimmel tweeted a response, saying "What makes me sad is that I know I'll never write anything funnier than #covfefe". Silicon Valley executive Andrew Crow went so far as to change his last name on Twitter to " Covfefe ".
    Goldman under fire for buying Venezuela

    Goldman under fire for buying Venezuela "hunger bonds"

    The bank said it did not buy the bonds directly from the Venezuelan government. Goldman Sachs did not say in its statement how much it paid for the bonds.

    Netflix CEO Pushing Creative Team to 'Take More Risks'

    The annual budget for Netflix originals is already $6 billion for 2017; the idea that it will grow even more is pretty wonderful . The controversy drew attention and may mean that people will know about a movie that they may never have discovered or watched.

CONNECT