Markets are unsettled and wary of US Nonfarm Payrolls data tonight. Oil prices fell sharply again overnight.
In our bonus deep-dive interview ahead of the Monetary Authority of Singapore’s (MAS) next policy decision, ANZ’s Head of Asia Research Khoon Goh explains why the MAS nudges the S$ around to control inflation, rather than interest rates.
5 things to know
Markets are jittery this morning ahead of US Nonfarm Payrolls data tonight. The US 10 year yield is down 2bps at 4.72% and the S&P 500 is down 0.5%. Oil prices fell another 2% and are down almost US$10bbl this week. The Aussie and Kiwi dollars edged up to 63.5 and 59.5 USc respectively.
ANZ’s Head of G3 Economics Brian Martin says markets forecast US jobs growth of around 170,000 in September, with unemployment down to 3.7%.
Australia’s trade surplus improved more than expected in September. ANZ Australia Economist Maddy Dunk says tourism exports are doing well.
Food and energy prices drove inflation data for South Korea, Philippines and Thailand, says ANZ Economist for Asia Krystal Tan.
Krystal sees the data reinforcing hawkish biases for central banks in the Philippines and South Korea, with the Philippines more likely to hike.
Bernard
PS: Have a great weekend and we’ll be back on Monday with analysis of tonight’s US jobs data and a preview of the week ahead.
