along with the rbnz, we get the sense that the bulk of the heavy lifting of these big moves might be they have to keep up with the likes of the fed. >> that's right. the rba does want to go slow and i don't think anybody is doubting that intention. the question is whether they can really go slow in a world where the fed is going so fast. also the australian dollar is weakening with the u.s. dollar so high. if you go slow, you risk collapsing your currency. it's going to be a very tricky meeting and also a tricky communication challenge. >> the official monthly indicator slowing down a little bit this week, what does that tell us about where the rba stands as opposed to the rest of the world which seems to be remaining quite hawkish? >> even from the start of australian inflation, compared to u.s. and u.k. has not been that high. we have not had the wage breakout elsewhere in the world. i think the biggest concern that the bank has is the household debt. australian households are some of the most indebted in the world. with interest rates going up, their repayments are going up and ho

we are hearing that the rbnz governor will be speaking at a climate conference later on next week. >>he u.s. economy is sending mixed signals ahead of the fed meeting next week. let's get more from kathleen hays. jobless claims, empire manufacturing, retail sales, -- >> i'm going to take two of the main questions for the federal reserve. they started raising rates aggressively and they're going to do more. the big concerns are will because a recession because they want to cut demand and what does that mean for the labor market because they want to push unemployment up not too much. let's start with retail sales. august retail sales were up 0.3%. there was a modest increase. july retail sales this happens a lot, it was revised. that was pretty much flat. gasoline sales if you take them out of retail sales, then they are up 0.8%. that's in nominal terms. that is one thing that pulled the sales down. on the other hand, furniture sales fell. one of the bright notes was auto sales. they were peppy because prices went up. people site demand is holding up , but it's not as strong as it was a

all in all it is unlikely to move the needle, when it comes to the rbnz from further tightening as inflationontinue to see the reserve bank of new zealand pushing forward, expecting another 50-basis point hike in october, and more hikes after that. many more to come here on "daybreak: australia." this is bloomberg. ♪ shery: here is a quick check of the latest business flash founders. -- business flash headlines. softbank founder messiah she sign is said to be reviving discussions to start a third division fund. sources say he has raised billions of dollars in cash recently, and he sees another startup fund as one of his possible priorities for the money. google is making cuts to area 120, it's in-house incubator for new projects. the tech giant is aiming to control spending and working to improve efficiency as ad budgets tighten. the affected workers will need to find new roles at google within a certain period of time or lose their jobs. this company from hong kong saw a record 312 percent surge in new york as frenzied buying added $27 billion in market value. the surge triggered multiple t

you could say the same thing about the rbnz. would put them in the category of central bank that is not looking to accelerate hawkish and it and could be looking to do the opposite. so, when this cycle turns, these yields are greater scream lower and the markets that will perform best probably are australia and new zealand. shery: shery: i always find it is better not to mention the word peak. i know for a fact garfield gets mad at me when i question, where is the peak of everything? [laughter] dollar strength. we continue to see the narrative of where bond markets and returns are going. when can we expect the dollar strength and bond yields to part ways question mark steven: can i use the word peak again? [laughter] just so i can focus on the dollar. i think at some stage they will be at peak. whilst the fed is indicating a willingness to stay hawkish, it is very difficult for the dollar to turn. you are right, the bond yield and the dollar have been moving together. that does not always happen, we could be looking at them part