Yesterday’s Reserve Bank of Australia meeting was very much ‘live’. While the consensus was for no change the rate hike didn’t come as a shock. Recent wage rise info and inflation data (and even higher inflation data) were all sweat points for the RBA.
And so we got a rate hike:
Reserve Bank of Australia Governor Lowe will likely be addressing the decision in his comments today. If not in his speech then in Q&A. Bullock also perhaps.
The next focus for the session follows later, the data for China’s trade performance in May. Speaking of sweat, China’s bounce out of lockdown, or the dissipation thereof, is a point of concern. There have been some moves for stimulus from Chinese authorities, aimed for now at the property sector. Further monetary stimulus might be some way off according to this:
But there is some head-kicking going on:
Note: ‘calls on’ and ‘asks’ means getting a kick in the head in China.
There are some ‘green shoots’ though, not that this is getting too much exposure but its significant:
Eyes will be on the trade data today to assess an improvement in the export sector and also to check out if domestic demand is bringing in more imports. ps. That 0300 GMT time for the Chinese trade data is approximate only.
This
snapshot from the ForexLive economic data calendar, access
it here.
The
times in the left-most column are GMT.
The
numbers in the right-most column are the ‘prior’ (previous
month/quarter as the case may be) result. The number in the column
next to that, where there is a number, is the consensus median
expected.