Markets Overview
- ASX SPI 200 futures up 0.3% to 7,488.00
- Dow Average up 0.4% to 34,818.27
- Aussie up 0.2% to 0.7494 per US$
- U.S. 10-year yield rose 4.4bps to 2.3822%
- Australia 3-year bond yield rose 4bps to 2.38%
- Australia 10-year bond yield fell 1bp to 2.83%
- Gold spot down 0.6% to $1,925.68
- Brent futures down 0.3% to $104.39/bbl
Economic Events
- 11am: (AU) March Melbourne Institute Inflation, prior 0.5%
- 11am: (AU) March Melbourne Institute Inflation, prior 3.5%
- 11:30am: (AU) March ANZ Job Advertisements MoM, prior 8.4%
The Reserve Bank of Australia is under pressure to begin tightening monetary policy in as little as two months as a a strengthening economy together with pre-election budget spending fuels inflation concerns.
A number of economists have either brought forward their call for the first interest-rate rise to June or are highlighting risks from Governor Philip Loweturning hawkish following the March 29 budget and amid rising global prices, a Bloomberg survey showed. All expect the cash rate to stay at 0.1% at Tuesday’s meeting, the first for newly appointed Deputy Governor Michele Bullock.
The RBA will be keen to stay out of the political spotlight given an election is due in May, even as the labor market approaches full employment and job vacancies hit a record, consumer spending is strong and commodity prices soar after Russia’s invasion of Ukraine. Indeed, core inflation is already above the midpoint of central bank’s 2-3% target for the first time since 2014.
Normally, that combination would trigger a rate hike from the RBA, as it has in global counterparts in the U.K., U.S., Canada and New Zealand. But beyond the election campaign, Lowe remains doubtful that higher inflation is sustainable without stronger wages growth. He wants to see salary increases of 3% or more, compared with the most recent reading of 2.3%.
At the same time, Russia’s war on Ukraine has added psychology to the consumer-price equation, with households hit by soaring gasoline prices lifting inflation expectations. Lowe worries those perceptions will make higher inflation a reality, and he needs to guard against that. Government budget cash handouts and fuel tax cuts only add to the mix.
Money markets expect the RBA to join the ranks of the Federal Reserve and the Bank of England by hiking in June. The cash rate is then seen climbing to 2.2% in a year’s time and 3.3% in two years. The median estimate of economists has come forward to July — due to some advancing their calls to June from August.
Other News
Move over, Wordle, it’s Weddle’s time to shine.
Regarded as the NFL’s version of Wordle, Weddle — which happens to share the name of former safety Eric Weddle — gives users eight tries to figure out the football player at the center of the puzzle.
Upon guessing a player’s name, their team, division, position, height, age and jersey number will then appear. Yellow boxes indicate you’re nearing the answer while green means you’re on the money.
Given the popularity of Wordle — which became a social media sensation in late 2021 — it shouldn’t come as a surprise that players are fawning over the Weddle guessing game.
“Finally a ‘Wordle’ game I am good at one,” one Twitter user recently quipped, while another penned, “OK. This is fun. It’s Wordle but with football players…”
This week, the team behind Weddle announced that a more challenging version of the game is on the horizon.
Given the popularity of Wordle — which became a social media sensation in late 2021 — it shouldn’t come as a surprise that players are fawning over the Weddle guessing game.
“Finally a ‘Wordle’ game I am good at one,” one Twitter user recently quipped, while another penned, “OK. This is fun. It’s Wordle but with football players…”
This week, the team behind Weddle announced that a more challenging version of the game is on the horizon.
