Daily Commentary BY THE CURVE TEAM –

Important Data Updates this Week

14th of December, 2020

Leading into the end of the year there are important data updates released this week.

The mid-year budget update will be released sometime this week. It is expected to re affirm that the economy is in stronger shape than expected when the budget was released in October.

Commodity prices will be a boon for the budget. Iron ore and LNG prices continue to rise, which should boost government revenues but continues to put upward pressure on the Australian dollar.

Employment updates will also come in the form of weekly payrolls on Tuesday and November employment on Thursday. These follow strong employment reads from the past couple of months.

The RBA Minutes from the December board meeting will be released Tuesday. Nothing substantial is expected given there was no change in policy, but the RBA’s view of the evolving economic environment will be of interest.

A key component of the changing outlook is positive vaccine news. The US has joined Britain and Canada in approving the Pfizer vaccine.

The EU is expected to follow suit at the end of December and Australia by the beginning of next year. It comes as the world struggles to contain the virus. South Korea are considering tightening restrictions and Germany have imposed their strictest rules yet.

Josh Stewart

Associate - Money Markets