Stocks and bonds rally on more signs US jobs data tonight will be soft, and clear the way for the Fed to cut rates. Australia’s household spend-up catches the RBA’s attention, and Australia’s gold exports hit a record high.
In our Deep Dive interview, ANZ’s Head of Asia Research Khoon Goh analyses the impact of US tariffs on Asian economies.
5 things to know in 5 minutes:
US markets rose overnight on more signs a soft Non Farm Payrolls report tonight will make it easy for the Fed to cut later this month. ADP private payrolls growth of 54,000 in August was weaker than expected, and barely half the 104,000 seen in July, says ANZ Economist in London Bansi Madhavani.
Australian household spending got off to a solid start in Q3, rising 0.5% in July. That followed Q2 GDP figures showing stronger household consumption. ANZ Economist Aaron Luk says the pick-up has been noticed by the RBA.
Australia’s goods trade surplus rose A$1.9 billion in July to $7.3 billion, its highest since February 2024. ANZ Economist Sophia Angala says rural goods and resources exports were supported by higher prices, and non-monetary gold exports hit an all time high amid global safe-haven demand.
A key component of New Zealand’s Q2 GDP data, building work put in place, was slightly weaker than expected in the quarter. It fell 1.8%. ANZ Economist Matthew Galt says construction activity is 20% off its 2022 stimulus peak.
Malaysia’s central bank held rates yesterday, as expected, but was more constructive with its tone, says ANZ Economist Arindam Chakraborty.
Cheers,
Bernard.
PS: Catch you next week with analysis of US jobs figures tonight, and what they could mean for the Fed’s September rates decision.
