US FED CAUTIOUS ON RATE RISE

US Fed boss Janet Yellen issued caution stating that the Fed will keep the rate low for longer due to weak global growth prospects despite a strong US payroll data and average hourly earnings rose higher than forecast. The stock markets rose on the back of the Governor's statement. The Australian Dollar which is on a surge rose further as analysts are of the opinion that the RBA will hold the rates at its meeting tomorrow. Whilst the surge of the dollar is a distraction for the RBA, we still believe that rates will be held steady here for some time. We will analyse the RBA statement to see if the RBA provides some lead into the debate for the value of the AUD. 

sydney melbourne record flat housing data 

The March numbers data released by RP Data shows that Sydney has recorded its lowest monthly growth in house prices to 1% while Melbourne in fact declined by 0.6%. These numbers go a long way in confirming the slow growth in house prices but certainly do not indicate a "bubble". Potential oversupply in the apartment market has been factored in credit to "off the plan" purchases in Sydney. The overall annual growth to March indicated solid growth in Melbourne at 9.8% followed by Sydney at 7.4%. Perth and Darwin registered annual decline in prices by 2 and 1.8%  respectively. 

MARKET DATA 

Australia Cash rate
Australia 90 day bank bill
Australia 10 y bond
US 10y Govt bond
AUD/USD
AUD/EUR
AUD/JPY
AUD/CNY
ASX 200
S&P 500
Dow Jones
Shanghai Composite
Brent Oil (USD per BBL)
Gold Spot (USD per oz)
"Iron Ore 60% MBIOI-IR index
USD/t (Updated Wednesday)"

As at 1-Apr
2.00
2.28
2.5
1.77
0.7651
0.6726
85.87
4.9458
4999
2078
17792
3009
38.67
1219
52.75

As at 25-Mar
2.00
2.30
2.56
1.88
0.7492
0.6706
84.48
4.8785
5084.00
2037.00
17535.00
2957.00
40.28
1219.00
54.64

webinar on fx risk management 

Ron Dutta, Director will deliver a webinar titled, "Volatility of the Australian Dollar- how it impacts on business and how to manage risk" on April 14. To join, please click on the link below and register at the Chartered Accountants Australia New Zealand website.
 http://www.charteredaccountants.com.au/Training/Reporting/Courses/LiveOne-Volatility-of-the-Australian-Dollar