- As is often the case, a keen ‘A’ rated ADI came to market with bespoke levels to meet end of quarter funding.
- A term deposit rate of 5.35% for 1 & 2 year were quickly locked in by market participants.
- NCD margins were elevated to +45 for 3 months as banks were keen bolster up cash reserves before the long weekend.
Soft Retail Sales For Australia
- In Australia, retail sales increased by 0.2% MoM.
- This growth was lower than market expectations of 0.3% MoM.
- The modest rise indicates that consumers were still cautious in their spending due to elevated interest rates.
- Sales decreased in various sectors including clothing & footwear, cafes, restaurants and takeaway and department stores.
- If this print had to be categorised in the hike vs no-hike argument, the weak data would have the RBA leaning towards no-hike.
- Besides outlier events like the Women’s World Cup, retails sales has remained soft for a considerable period.
- Looking forward there is not much to suggest that this will change for the rest of 2023.