Crypto News: RBA decision divide

Good morning, it's Ainsley here with a round up of the news to kick off your week.

Today's must-reads:
• RBA watchers split
• House-price gains ease
• EU free trade deal still a 'way off'

Tomorrow's interest rate decision is dividing economists and money markets on whether the Reserve Bank will stand pat to assess the impact of previous tightening or raise again to forestall upside risks to prices. Economists are almost evenly split, while traders are pricing a 60% chance of a pause.

House prices climbed at a slightly slower pace in June — while still performing strongly in key cities — as sentiment showed signs of easing on the prospect of further interest-rate increases ahead. The Sydney market advanced 1.7% and Brisbane by 1.3%, resulting in a 1.2% gain in Australia's major cities, data from property consultancy CoreLogic showed.

A free trade deal between Australia and the European Union is "still a fair way off" but the country remains hopeful a deal will be reached, Australia's agriculture minister said. In Rome meeting with European counterparts, Agriculture Minister Murray Watt said while beef was a sticking point, there were also issues relating to sheep meat, sugar and dairy products.

Australian coal exports are set to rise for at least the next three years on growing demand for the dirtiest fossil fuel in India and Southeast Asia, according to a new report from Canberra. Chinese imports of Australian coal have also begun to tick up, after an informal ban was lifted earlier in 2023.

China named Pan Gongsheng as the People's Bank of China's new Communist Party chief. President Xi Jinping's elevation of Pan signals no major policy shifts, indicating the bank will stay with its recent approach of only modestly cutting interest rates and encouraging banks to lend more to targeted areas.

Tesla delivered a record 466,140 cars worldwide in the second quarter, outpacing Wall Street estimates. The results, posted yesterday, demonstrated that Chief Executive Officer Elon Musk's vow to chase volume by cutting prices have had their intended effect.

Tensions abated slightly in France during a fifth night of unrest as authorities sought to contain the fallout from the killing of a teenager that's reignited debate about racism and inequality. Amid a heavy police presence nationwide, some 719 people were arrested overnight, down from more than 1,300 the night before, according to the government.

Global equities have decoupled from a worsening economic backdrop after rising about 13% in 2023, prompting warnings from some of the world's top money managers that chasing the rally from here on is a risky move. Growing corporate profit warnings are also driving home the message.

All times Sydney

9:00 a.m.: June Judo Bank Australia manufacturing PMI
11:30 a.m.: Australian building approvals for May
11:30 a.m.: Australian home loans data for May
11:30 a.m.: June ANZ-Indeed job advertisements

Australia is the first in the world to legally approve MDMA and psilocybin for treating acute mental health conditions. Photographer: James MacDonald/Bloomberg

Psychedelics can now be legally used as medicine in Australia in a world-first approval that's aimed at treating acute mental health conditions. MDMA and psilocybin — better known as ecstasy and magic mushrooms — are cleared for post-traumatic stress disorder and treatment-resistant depression.