The case for a rate hike, while not totally compelling yet, is gaining a bit of momentum with these sort of numbers. On an interest-rate-differential and growth story, it should put the Australian dollar back in focus and see it move higher.
More Quotes from Stephen Koukoulas:
With the core inflation readings fly-papered to a narrow range around 2.5 per cent, there is scope for the RBA to continue its rates-on-hold strategy for several more months.Stephen Koukoulas
A big increase could certainly get the Reserve Bank a little nervous. They'd be very close to pulling the trigger, raising the rate.
Stephen Koukoulas
The market hasn't been paying enough attention to inflation risks as it should. The prospect of an interest-rate move higher in the months ahead will mean the Australian dollar will find some friends.
Stephen Koukoulas
There's an opportunity to buy U.S. dollars on the expectation that by the second half of this year U.S. strength will be sustained.
Stephen Koukoulas
If RBNZ Governor Alan Bollard needed more information to stop hiking interest rates, the house-building consents data today fit the bill.
Stephen Koukoulas
Any hopes that the Reserve Bank could hold off raising interest rates have been dashed, ... If the bank is going to contain inflation in 2006 and 2007, they have got to keep raising rates.
Stephen Koukoulas
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