US stocks are soft ahead of Fed Chair Jerome Powell’s Jackson Hole speech tonight. New Zealand’s trade bounce may be at a turning point. There’s price pressure showing through in Japan’s manufacturing sector.
In our Deep Dive interview, ANZ Economist Aaron Luk has been looking at how Australian consumers react to Reserve Bank of Australia rate cuts.
5 things to know in 5 minutes:
All eyes are on Jerome Powell’s final Jackson Hole speech tonight at midnight Australian time. ANZ Economist Bansi Madhavani is watching for whether the outgoing Fed Chair will signal a resumption of rate cuts next month.
Bansi is also looking for the results of the Fed’s once-every-five years review of its monetary policy framework.
New Zealand’s goods trade balance switched back to a monthly deficit in July after five surpluses in a row. ANZ Senior Economist Matthew Galt says an improved annual deficit looks to be at a turning point after a solid run.
Japan’s manufacturing sector remained in contraction in July, while services activity rose at a slower pace. ANZ FX Analyst Felix Ryan says key points were a large drop in export orders, but price pressures keep showing through.
That data in Japan comes after Q2 growth was stronger than expected last week, with the Yen gaining support, says ANZ Head of FX Research Mahjabeen Zaman.
Cheers,
Bernard.
PS: Catch you next week with analysis of Fed chair Jay Powell’s Jackson Hole speech and what it could mean for global interest rates.
