Daily Commentary BY THE CURVE TEAM –

Travel Bubble Begins

19th of April, 2021

A significant step for the post covid economy begins today.

Travel without quarantine between New Zealand and Australia begins today. If anything, the effect for Australia may be negative, as more Australians will go to New Zealand than visa versa.

However, it marks a significant step in the economy returning to pre-covid conditions. International travel and border closures has been a key challenge for the economy returning to normality.

The announcement should boost confidence and hopefully is the first of a gradual opening of the border.

There are a handful of updates this week. Top of the agenda is the RBA minutes for the April meeting, which are released tomorrow.

After the minutes, preliminary retail sales for March are released on Wednesday. Neither updates are expected to be ground breaking, which reflects how the interest rate outlook will for the most part be in a holding pattern until the term funding facility ends and the RBA make a decision on the yield curve target and QE.

Josh Stewart

Associate - Money Markets