Coming up at 0030 GMT:
National Australia Bank preview - analysts at the bank expect the FSR to be under close scrutiny, citing the Reserve Bank of Australia monetary policy decision earlier this week:
- the RBA’s downshift to 25bp hikes, which was done based on the uncertainty how households will respond to tighter financial conditions, as well as uncertainty around the global outlook.
NAB not mentioning potential AUD impact though. Most likely that's correct, any currency impact will be small:
- The prior FSR in April had modelling on what would happen to house prices and loan serviceability of mortgage rates rose 200bps. Since that point in time the RBA cash rate has risen by 250bps. On RBA model had a 200bp increase in mortgage rates lowering dwelling prices by around 10% in nominal terms, the RBA assessed the majority of indebted households were well placed to manage higher minimum loan repayments should mortgage rates rise by 200bps (note fixed rate loans have now increased by 390bps since mid-2021)
AUD/USD update:
