Daily Commentary BY THE CURVE TEAM –

Markets Quiet Ahead of Key Data

10th of December, 2019

With the first key piece of data for the week arriving later today, markets had a quiet start to the week.

As markets await the NAB business survey today, news overnight was relatively quiet. Unsurprisingly, with the next crucial US-China tariff deadline fast approaching, murmurings that we will see a delay in the date have already started. The US Agricultural Secretary stated overnight:

I do not believe those will be implemented and I think we may see some backing away”

Markets are hoping for a resolution to the negotiations in the form of a phase 1 deal. That is now looking increasingly unlikely.

Additionally, Governor Lowe spoke at the Australian Payments Network Summit this morning. He spoke about the RBA development of the new payments platform. As usual, the Q&A after the event was the crucial insight. It was clear the RBA still has a strong belief that spending will increase overtime. When quizzed on the recent weak GDP numbers and spending he stood firm and reiterated that monetary policy has long and variable lags so we need to wait and see the full effect of recent cuts.

Later this afternoon, Curve will release the December Monthly Insight with a deeper analysis on recent speeches by the RBA and the outlook for monetary policy.

Matthew Dunshea

Client Relationship Manager