As the smoke clears after last night’s scorching U.S. inflation report, local attention will shift to an Antipodean doubleheader tomorrow in the form of the Q2 NZ GDP and the Australian August labour force report.
While none of the data points is expected to have the same kind of an impact as the one seen today, they both contribute to the story of how quickly the RBNZ and RBA tighten their monetary and monetary policies.
At 8:45 a.m. Sydney time, the Q2 New Zealand GDP figures will be released. Following a 0.2 per cent decline in Q1 when Omicron tore through the nation, a 1.6 per cent increase in Q2 is anticipated due to the reopening of international borders and the reintroduction of foreign tourists and students.
The RBNZ is anticipated to keep raising rates from 3 per cent to 3.75 per cent by November, notwithstanding the property market’s rapid slowdown.
Tomorrow at 11.30 a.m. Sydney time, the Australian Labor Force Report for August is due. It is anticipated that there will be a 50k increase in employment, the unemployment rate will remain at a record low of 3.4 per cent, and the participation rate will increase to 66.7 per cent.