logo
Australia, NZ dollars hit pause as rate outlook pondered

Australia, NZ dollars hit pause as rate outlook pondered

Mint3 days ago
SYDNEY, July 22 (Reuters) - The Australian and New Zealand dollars were flat on Tuesday as concerns about U.S. tariffs and central bank independence hamstrung the greenback, offsetting a dovish outlook for interest rates at home.
Minutes of the Reserve Bank of Australia July board meeting confirmed further cuts lay ahead and a decision to pause at 3.85% was largely because the majority did not want to be seen as easing too quickly.
One of the arguments against an immediate cut was that the labour market had not loosened as forecast, but data since then has shown unemployment unexpectedly spiked to a 3-1/2 year high in June.
As a result, markets imply almost a 100% chance the RBA will ease to 3.60% at its next meeting on August 12, and take rates to 3.10% by the end of the year.
"We expect another three 25 bps rate cuts this cycle - in August, November and February - down to a 3.1% terminal rate," said Andrew Boak, an economist at Goldman Sachs.
"We view the risks as skewed to a faster and deeper easing cycle, and particularly if June's gap higher in the unemployment rate is sustained."
A speech by RBA Governor Michele Bullock due on Thursday should help refine the outlook and she is likely to draw questions on whether the central bank is being too slow to ease given the disappointing labour data.
Three-year bond futures were supported near a two-week high of 96.635, while 10-year yields dipped 2 basis points to 4.308%.
The Aussie held steady at $0.6520, some way above last week's low of $0.6455. Resistance lies around $0.6540 and $0.6595.
The kiwi dollar eased a fraction to $0.5960, still weighed by a downside surprise on quarterly inflation. Major support lies at $0.5907 with resistance at $0.5990.
Markets now imply around an 80% probability the Reserve Bank of New Zealand will cut the 3.25% cash rate a quarter point at its meeting on August 20.
Investors suspect this will be close to the end of the easing cycle, with some chance of a move to 2.75% next year.
The RBNZ's chief economist is due to give a speech on the economic impact of tariffs on Thursday and might help refine the prospects of an August easing. (Reporting by Wayne Cole; Editing by Kate Mayberry)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tesla plans to launch Robotaxis in San Francisco this weekend
Tesla plans to launch Robotaxis in San Francisco this weekend

Time of India

time20 minutes ago

  • Time of India

Tesla plans to launch Robotaxis in San Francisco this weekend

Tesla is preparing to launch its robotaxi service in San Francisco as soon as this weekend, Business Insider reported on Friday, citing an internal staff memo. The company's robotaxi business is still in its early stages, having only conducted a controlled test run in Austin, Texas, earlier this year. The geofenced area where the robotaxi service will operate covers a large swath of the Bay Area, including Marin, much of the East Bay, San Francisco and stretching south to San Jose, the report said. The launch timeline has been moved up to as early as Friday and some Tesla owners will receive invites to use the service, according to the report. CEO Elon Musk has shifted Tesla's focus toward robots and self-driving taxis to counter declining sales for the electric automaker's aging vehicle lineup. Meanwhile, The Information reported that Tesla is well behind the pace necessary to meet Musk's goal of producing at least 5,000 of its Optimus humanoid robots this year, having made only a few hundred of them. Reuters could not independently verify the Business Insider and Information reports, while Tesla did not immediately respond to requests for comment on the reports. During the earnings call this week, Musk said Tesla is getting regulatory permission to launch robotaxis in several states, including California, Nevada, Arizona and Florida. California regulators told Reuters on Wednesday Tesla had not yet applied for permits needed to pick up and charge passengers for rides in fully autonomous vehicles. Companies need a series of permits from the California Department of Motor Vehicles and the California Public Utilities Commission to test and deploy autonomous vehicles in the state. The DMV and CPUC did not respond to requests for comment. Regulatory hurdles pose a challenge to Tesla as it must gain the trust of safety officials before launching fully autonomous services. (

Indian homebuilder Sobha's Q1 profit up 125% on premium housing demand
Indian homebuilder Sobha's Q1 profit up 125% on premium housing demand

Business Standard

timean hour ago

  • Business Standard

Indian homebuilder Sobha's Q1 profit up 125% on premium housing demand

Indian real estate developers have capitalized on a post-pandemic shift in buyer preferences towards larger, amenity-rich apartments by securing land deals and swiftly launching new projects Reuters Indian homebuilder Sobha reported a first-quarter profit on Friday that more than doubled, helped by higher prices and sustained demand for premium apartments. The Bengaluru-based real estate company, which logged record sales in the June-quarter, said its consolidated net profit rose to 136.2 million Indian rupees ($1.58 million) from ₹60.56 million year. Revenues rose 33 per cent to ₹8.52 billion. In recent years, Indian real estate developers have capitalized on a post-pandemic shift in buyer preferences towards larger, amenity-rich apartments by securing land deals and swiftly launching new projects. But with the frenzy cooling in some parts of the country, homebuilders have pivoted from chasing higher sales towards timing their launches as per shifts in demand, analysts have said. National elections delayed approvals for project launches last year across the real estate industry - which hampered timelines for Sobha as well until recently. With approvals-related bottlenecks easing, analysts at HSBC expect the current fiscal year to mark a "turnaround" for the company (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dutch regulator delays Apple ruling amid EU talks on App Store: Report
Dutch regulator delays Apple ruling amid EU talks on App Store: Report

Time of India

timean hour ago

  • Time of India

Dutch regulator delays Apple ruling amid EU talks on App Store: Report

Dutch antitrust watchdog, the Authority for Consumers and Markets (ACM), has delayed its decision on Apple over fees charged to dating app providers on the App Store. According to a report by news agency Reuters, the regulator said that it is waiting for the outcome of ongoing discussions between Apple and the European Commission on a similar issue before moving forward. Tired of too many ads? go ad free now According to ACM, Apple recently changed its fee structure in response to those talks and has said it plans to make further adjustments later this year. The regulator had previously ruled that Apple abused its dominant market position by imposing unfair conditions on dating app developers. That decision was upheld by a Dutch court in June, which found that the company's practices in the App Store violated competition laws. The ACM has not provided a new timeline for its final ruling. The ongoing talks between Apple and the European Commission are expected to influence how both EU and national regulators handle competition issues related to the App Store in the future. In a related news, Reuters recently reported that Apple's updates to its App Store rules and fees are likely to get approval from EU antitrust regulators soon. Citing people familiar with the matter, the report said that this could help the Cupertino-based company avoid large daily fines. Last month, the iPhone maker said that developers will soon be required to pay a 20% processing fee for purchases made via the App Store. For Apple's small-business program, the fees could go as low as 13%.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store