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90 seconds at 9am: Tax reform D-Day; RBA holds rates; A$ drops; NZ$ rises
February 3rd, 2010
Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news Prime Minister John Key will announce likely tax reforms next Tuesday in his ’speech from the throne’ to open Parliament.
This will foreshadow announcements likely in the 2010 budget due on May 20. Both Key and Finance Minister Bill English confirmed the plan to detail likely reforms. This means the property market will not have to remain in limbo until May.
Meanwhile, the Reserve Bank of Australia surprised most economists by leaving the Official Cash Rate there on hold yesterday afternoon at 3.75% after three consecutive rises in its last 3 decisions. The Australian dollar fell 1 USc and the NZ dollar rose 1Ac to 80.4 Ac after the decision. The NZ dollar was also helped by hopes of a global economic recovery that lifted the Dow 1% and boosted appetites for risky currencies like ours. Oil and and aluminium prices also rose on expectations a global recovery would increase demand for commodities.
However, Fonterra’s online auction overnight of milk powder found average prices fell 1.6% in February from January and are down 8.5% from its recent December peak.
Tags: 90 seconds at 9am, Bernard Hickey, BNZ
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February 3rd, 2010 at 10:11 am
“expectations a global recovery would increase demand for commodities”…music to my wallet.
February 3rd, 2010 at 10:33 am
Was waiting for a moment like this to uplift some of my kiwi savings to oz, nice suprise because the NZD wasn’t doing so well against the AUD.
Still on copper Wally? It’s come off the boil lately hasn’t it? Taking a breather?…..
February 3rd, 2010 at 11:10 am
its interesting as to why the RBA held rates, when it was so widely accpeted that a 0.25bps hike was on the cards… perhaps all is not so fine across the ditch after all, maybe the wheels are close to coming off… we’ll see.
Mish has an interesting article on Australia today, well worth a read:
http://globaleconomicanalysis.blogspot.com/2010/02/pool-of-greater-housing-fools-in.html
February 3rd, 2010 at 11:23 am
Global recovery – oh come on! Strip out the one off figures and you have a side ways recovery at best whch in some ways may not be too bad in educating Gen X Y Z that the world does not always goes up and revolve around their on little world in spite of what their parents promised them.
February 3rd, 2010 at 11:45 am
Here’s Kevin at interestratenews.com.au on the non-rate hike
http://www.interestratenews.com.au/news/2010/02/03/what-a-difference-a-day-makes/
cheers
Bernard