It was a solid close for global equities last week, with European Bourses set to challenge record highs and Wall Street paring losses sustained earlier in the week.
Currency Pair of the Week: AUD/NZD
Joe Perry April 12, 2021 2:19 PM
The RBNZ meeting and the Australian Employment are both this week! Share:
Australia will release their Employment data this week on Thursday. Expectations are for an additional 35,000 jobs to be added to the economy. In February, 88,700 jobs were added, of which just about all were full-time jobs! The unemployment rate is expected to drop from 5.8% to 5.7%. Last week, the RBA met and left interest rates unchanged at 0.1% and began a new A$100 billion bond purchase program. The committee noted that they would leave monetary policy accommodative until actual inflation is withing their 2%-3% target, which they don’t expect to be until 2024. Housing prices are rising, and fears are stirring of an overheated market. If jobs come in stronger than expected, wil
NZ Economy Performs Better than RBNZ Assumes NZD Strength Remains a Concern for RBNZ AUD /NZD the Preferred Play for RBNZ Meeting NZ Economy Performs Better than RBNZ Assumes
Next week will see the RBNZ deliver its first monetary policy announcement of the year, where expectations are for the central bank to stand pat on current monetary policy. However, in light of the recent run of stronger than expected economic data, the focus will be on the RBNZ s updated forecasts as well as Governor Or s presser.
At the last meeting, the RBNZ provided a hawkish surprise given that the NZ economy had performed significantly better than the central bank s pessimistic forecasts, which in turn saw a sharp re-pricing of negative rates in the front end of the curve and subsequently prompted a sizeable bid in the Kiwi . Since the November meeting, it appears as if the RBNZ has once again underestimated the recovery in the NZ economy as domestic data has outperformed the RBNZ s forecasts. Q