Daily Flows
- Yesterday, market participants were able to pick up 5.47% for a 1-year term deposit.
- Recent rises in reference rates have pushed the TD curve price upwards, with 5% being offered from 4 months onwards.
- Outright 3-month NCD levels are now reaching 4.80%.
Retail Sales Continues to Show Resilience
- Australian retail turnover increased by 0.9% in September 2023.
- Previous months saw rises of 0.3% in August and 0.6% in July, with the latter figure being revised upwards.
- Factors contributing to the September increase included a warmer spring, leading to higher turnover in department stores, household goods, and clothing retailers.
- Despite the strong September performance, overall growth in retail turnover remains historically low, with only a 1.5% increase in trend terms compared to September 2022.
- The Head of ABS retail statistics, Mr. Dorber, suggests that a comprehensive understanding of the impact of changing consumer prices on retail turnover growth can be obtained by examining quarterly retail sales volumes, which will be released next week.
- While this result further supports the RBA’s decision to raise interest rates on Melbourne Cup day, the results may be temporarily as they seem to be driven by one-off factors.