Good morning, it’s Amy in Melbourne with your Tuesday newsletter on the first day of July. We’ll have the latest markets news for you, and it’s a big day for the superannuation industry... 

Today’s must-reads:
• Super contributions rise 
• House prices climb
• Household battery scheme

What's happening now

More money will be flowing into the retirement savings accounts of Australian workers with the superannuation guarantee rising to 12% today, a key milestone for the country’s A$4.1 trillion ($2.7 trillion) pension system.  

House prices are up for a fifth straight month, fueled by the Reserve Bank’s two interest-rate cuts this year. The Home Value Index advanced 0.6% in June, with every major mainland city recording a rise. 

A program to encourage households to buy batteries cuts the upfront cost of installation by about 30%. The program is part of efforts to absorb excess renewable energy and curb price swings. 

China's envoy to Canberra urged Australia not to be "incited" by NATO's support for US demands to sharply raise defense spending and should cooperate with Beijing to resolve regional disputes.

Across the ditch, New Zealand’s filled jobs are down to levels last seen in early 2023. Global uncertainty is making employers cautious about hiring.

What is the future for EVs in Australia? Read our wrap of the Melbourne International EV Autoshow, where the exhibitors drawing the biggest crowds at the three-day event were Chinse brands BYD and Xpeng.

Leapmotor Ultra Hybrid Photographer: Chris Bourke/Bloomberg

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

The dollar rout continued, not only resuming its daily decline, but posting its sixth straight monthly loss as well with Trump’s tax bill and bets on the Federal Reserve easing interest rates weighing it down. Treasury Secretary Scott Bessent indicated that rates across maturities will drop as inflation slows. The S&P 500 Index hit a new high, which, given its strong correlation, helped Aussie and kiwi dollars higher overnight. Today, Australia has manufacturing PMI on its plate while ASX futures signaled a staid open for local stocks.

The US Justice Department has arrested one person and charged nine others in connection with an alleged scheme in which North Koreans used stolen identities to gain employment with multiple American companies. 

Thailand’s most influential political dynasty is facing two high-profile legal battles. The country’s Constitutional Court may decide today whether to accept a petition seeking Prime Minister Paetongtarn Shinawatra’s ouster, while a separate court is set to begin the trial of a decade-old royal insult case against her father, Thaksin Shinawatra.

Indonesia’s President Prabowo Subianto wants every child to get a free daily meal. But as Bloomberg Opinion’s Daniel Moss writes, someone has to pay for the expensive program.

What to watch

• 9:00 a.m. — June S&P Global Australia PMI Mfg, prior 51.0

One more thing...

The Iran-Israel war highlighted a critical flaw in the satellite-based systems that guide global shipping navigation systems. Bloomberg News analysed 94,000 positioning signals of 56 vessels in early June and found they moved unrealistic distances on 1,500 occasions. The signal interference caused by Israel-Iran tensions is another reminder of how vulnerable shipping routes are to conflict. 

A large crude oil product tanker ship in the Strait Of Hormuz  Photographer: Clare Louise Jackson