US stocks hit fresh record highs overnight after US retail sales beat forecasts. Australia’s unemployment rate unexpectedly jumps. New Zealand’s inflation rate is set to rise in the June quarter, and Japan’s exports drop again.
In our deep dive interview, ANZ Commodities Strategist Soni Kumari digs into what’s been driving the platinum price so far this year.
5 things to know in 5 minutes:
US retail sales rose 0.6% in June from May, which was better than expected. But ANZ Head of G3 Economics Brian Martin says the trend for the June quarter wasn’t quite as healthy.
Australia’s unemployment rate unexpectedly rose to 4.3% in June against expectations for it to remain flat at 4.1%. Employment rose by 2,000 against expectations of about 20,000. ANZ Economist Aaron Luk says there was statistical noise as well as the softer signal in the data.
Aaron says the result supports ANZ Research’s view that the Reserve Bank of Australia will cut rates by 25 basis points next month as part of a shallow easing cycle.
ANZ Research has upgraded its New Zealand Q2 CPI pick to 2.9% annually due to strong food prices in June. That’s close to the top of the Reserve Bank’s 1-3% target band. ANZ Senior Economist Miles Workman says the lift is due to higher volatile tradables prices, meaning an August rate cut is still on the cards.
Japan’s exports fell 0.5% in June - the second decline in a row. ANZ FX Analyst Felix Ryan says the fall was led by car and steel shipments, and exports to the US.
Cheers,
Bernard.
PS: Catch you next week with a look ahead to New Zealand’s Q2 CPI on Monday and RBA July meeting minutes on Tuesday.
