US Treasury yields surged again overnight after fresh signs of heat in US super-core inflation data. That pushed the US dollar up against the Aussie dollar, the Kiwi dollar and the euro.
In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh unravels a rise in portfolio outflows in Asia-ex China and looks ahead.
5 things to know
US headline CPI inflation was 0.4% in September. Super-core inflation (services ex-shelter) of 0.6% was a bit warmer than expected, says ANZ’s Head of G3 Economics Brian Martin.
The US 10-year Treasury yield rose 10 bps to 4.69%, lifting the US dollar almost a cent to €1.0530. The A$ fell a cent to open in Asian trade at 63.17 USc. The NZ$ fell a cent to 59.3 USc by 5 am AEST.
The euro was also weak after fresh commentary from officials that ECB rates are on hold because of a weaker inflation pulse, Brian says.
New Zealand’s general election tomorrow is focused on cost-of-living issues. Food inflation fell in September, but rent inflation firmed as net migration rose to record highs, says ANZ NZ Economist Henry Russell.
India’s annual inflation rate fell more than expected in September to 5.02% from 6.83% in August, thanks largely to a 62% fall in tomato prices and higher subsidies for fuel. ANZ’s economists saw the fall reassuring the RBI.
Cheers
Bernard
PS: Catch you on Monday with a deep-dive interview with ANZ’s Chief Economist for Greater China Raymond Yeung on China’s Local Government finances at a tipping point.
