US bond yields fell after Fed Chair Jerome Powell appeared to rule out rate hikes. Japanese authorities may have intervened again to hold up the yen. South Korean and Indonesian inflation eases. Australia’s record imports suggest demand is holding up.
In our bonus deep dive interview, ANZ Agriculture Economist Susan Kilsby looks at how global economic developments, and the weather, are affecting demand for New Zealand’s key primary exports.
5 things to know:
Bond markets rallied and Treasury yields fell ahead of key US jobs figures tonight and after Fed Chair Jerome Powell appeared to rule out rate hikes, which some had begun to fear, as ANZ Head of FX Research Mahjabeen Zaman says.
There is speculation Japanese authorities intervened again after the Fed’s decision. Dollar-Yen was 153.5 this morning, having fallen from 157 yesterday.
South Korea’s CPI eased slightly more than expected in April, with the annual rate at 2.9%. ANZ Economist Krystal Tan says if this continues, the Bank of Korea could cut rates from Q3 this year. Indonesia’s inflation rate fell too.
ANZ’s Head of G3 Economics Brian Martin expects US non-farm payrolls data to show monthly growth of around 240,000 jobs, but he’s also looking at wage inflation data the Fed might worry about.
Australia’s goods trade surplus was lower than expected at A$5 billion in March, its weakest level since November 2020. ANZ Economist Maddy Dunk says record high imports means retail demand may be higher than earlier indicated.
Cheers
Bernard
PS: Catch you next week with a closer look at what might happen to US-China bilateral relations if Donald Trump is re-elected.
