Daily Commentary BY THE CURVE TEAM –

Virus Progress Continues

28th of September, 2020

Optimism for the domestic economy continues to grow as Covid-19 numbers are contained.

Only 5 cases were recorded in Victoria yesterday, which is a marked improvement from previous months. This has prompted an easing of lockdown measures as of today in the Melbourne CBD, although they remain very stringent.

In NSW, as case numbers improve, the prospect of Queensland opening the border to all of the state improves. The border is currently open to select jurisdictions in northern NSW.

As the prospect for borders re-opening improves, the government has extended support programs to the aviation industry. Flights for regional areas will receive government support until the end of March next year and city flights until the end of January.

These support packages will aim to boost domestic tourism which peaks during the Christmas holiday period. Any kick to economic activity will be welcome with the economy in a recession.

Data updates this week include credit data and building approvals on Wednesday. Retail sales for the month will be confirmed on Friday after the preliminary numbers showed a fall last week.

House price data will also be updated on Thursday. Updates this week will largely act as a prelude to the budget and RBA meeting on Tuesday next week, which will draw wide interest.

Josh Stewart

Client Relationship Manager