Daily FNArena News - Australia

The biggest decline in Australian job ads since February 2001 has ANZ backing the prospect of another rate cut soon.

Australia’s trade balance fell to a deficit of more than $700 million in July against market estimates of a small surplus, but mixed data means monetary policy will be unaffected.

Australian GDP increased a lower than expected 0.3% in the June quarter, making more rate cuts likely by the end of the year.

Leighton Holdings has won another contract in the UAE, but UBS points out the shared risk/return aspect could set a significant precedent.

A track record of underperformance sees ABN Amro drop coverage on Avastra Sleep Centres and Kip McGrath Education.

New Chinese tariffs are likely to increase global fertiliser prices in the short-term, a boon to Incitec Pivot and Orica.

The RBA believes recent tight monetary policy along with other factors has worked, so there is now scope for further cutting.

The RBA today cut the cash rate by 25 basis points to 7.00%.

Australian company profits rose a far stronger than expected 14% in the June quarter, suggesting the RBA will be cautious in cutting interest rates going forward.

Wizard has led the way with a pre-emptive mortgage rate cut and the big boys are expected to follow suit. But will RBA cuts continue to be passed on in full down the track?