RBA Faces Parliamentary Committee as ASX Rises

The Australian share market has risen as the Reserve Bank of Australia (RBA) faced a parliamentary committee in Canberra. The ASX opened 0.35% higher, while the All Ordinaries rose 0.4%. This follows the rebound on Wall Street overnight, with the Nasdaq gaining 1.7%, the S&P 500 rising 1.1%, and the Dow Jones adding 0.6%.

The Federal Reserve's first interest-rate rise in over three years has led to a dip in Treasury yields. Technology was the strongest sector on the S&P 500, with chipmakers and gold miners each rising more than 3%. RBA governor Michele Bullock said housing market conditions had softened and that a larger-than-expected easing could pose a downside risk to economic activity.

Bullock stated that housing prices have fallen in most capital cities and new housing loans have declined, but prices remain about 50% above their level in early 2020. She attributed the structural undersupply of housing in recent years as the main driver of these prices, with financial-stability risks remaining contained.

The committee also discussed the AI and technology boom, with RBA deputy governor Andrew Hauser saying that it is evident in both the United States and Asia-Pacific region. He noted that global growth forecasts have been repeatedly surprised on the upside, describing the cycle as a conventional investment boom involving data centres, memory chips, and servers.