Australian Mortgage Stress on the Rise
A QUARTER of Australian homeowners are experiencing mortgage stress and rental vacancies remain tight, driven by higher interest rates, rising costs and a shortage of rental properties in some cities, a report reveals. Read more
Westpac Calls for Interest Rate Cut to Aid Manufacturing
ECONOMISTS at one of Australia’s biggest banks are urging the central bank to cut interest rates before the end of the year after a new survey showed the manufacturing sector continues to deteriorate. Read more
Aussie & NZ Dollars Hold Gains After Fed
WELLINGTON/SYDNEY, Aug 29 (Reuters) – The Australian and New Zealand dollars held on to last week’s gains early on Monday, having risen against a broadly weaker greenback after the head of the U.S. Federal Reserve kept the door open to more policy action to stimulate the U.S. economy.
* The Aussie dollar last trades at $1.0575, near a 1-1/2 week peak around $1.0593 reached on Friday after Fed Chairman Ben Bernanke said the central bank would consider what more it could do to fight high unemployment.
* Bernanke, however, stopped short of detailing further action to boost the U.S. recovery, leaving the focus on upcoming economic data including the influential non-farm payrolls due on Friday.
* Aussie nearing the 55-day moving average around $1.0620, then the 100-day moving average at $1.0643. Support seen at $1.0535.
* Aussie also boosted on Friday after Reserve Bank of Australia governor gave no hint of easing, which prompted markets to trim expectations of deep rate cuts. .
* Still, Aussie debt markets pricing in the risk of up to 100 bps worth of cuts by year-end. Earlier in the month, the market had discounted over 160 bps of easing by December.
* The kiwi at $0.8394, barely changed from late NY levels, and holding not far off Friday’s 1-1/2 week peak around $0.8420. Strong resistance seen at $0.8508, a retracement level, support at $0.8260.
* Aussie touch firmer vs kiwi at NZ$1.2610 , climbing off a one-week low of NZ$1.2528 Friday. But pair still stuck in recent range, off a one-year trough of NZ$1.2305 struck earlier in the month.
* No major data due in NZ and Australia on Monday. Key data due later in the week includes capex and retail data in Australia and business confidence and terms of trade data in NZ.
* Australian bond futures mixed, with the 3-year contract 0.02 point lower at 96.150 and the 10-year 0.01 point higher at 95.615.
* NZ government bondsfirmer in the longer end. (Australia/New Zealand bureaux)
RBA Chief Glenn Stevens Says Economy Robust
AUSTRALIA’S economy is in better shape than consumers give it credit for, Reserve Bank governor Glenn Stevens says, suggesting an interest rate cut next month is less likely. Read more
Tips and Traps for First Home Buyers
GETTING a foot in your own front door is one of the biggest financial hurdles most people have to face, yet the dream can become a reality in a few years. Read more