The US-ISM manufacturing index rose to 60.2 in June from 58.7 in May, beating expectations. It appears that steady business expansion and elevated optimism persisted despite elevated trade concerns.
Looking at the key events lined up for the week…..
The Reserve Bank of Australia seems certain to keep its cash rate unchanged at 1.5%. But there is interest in their statement, on factors including the ongoing fall in house prices and the pressure on mortgage rates from the rise in banks’ funding costs.
New Zealand’s Global Dairy Trade Price index is due tomorrow, followed by details of Australia’s May Trade Balance.
Meanwhile, the U.S. celebrates Independence Day on Thursday. Stock and bond markets are expected to be closed, along with government offices. However, on Friday the Federal Reserve releases minutes of its June meeting followed by their unemployment and payroll on Saturday.