European GDP growth data was much weaker than expected overnight, reinforcing the gap seen opening up between US, the euro zone and China. That’s powering the US$ ever higher.
In our bonus deep-dive interview, ANZ’s Asia Economist Krystal Tan details how Bank Indonesia is fighting to contain the pressures on the rupiah from that strong US$.
5 things to know
European GDP grew just 0.1% in Q2, well below the initial estimate and market consensus for 0.3%. ANZ’s Head of G3 Economics Brian Martin says consumers are struggling with high inflation and high interest rates.
German factory output fell 0.8% in July, worse than the market forecasts for a 0.5% fall. Car output fell 9%. Brian says German manufacturers face weak exports and a massive transition away from Russian gas.
Strong car imports and weak gold exports softened Australia’s trade surplus in July, says ANZ Australia Economist Maddy Dunk.
China’s exports and imports weakened again in August, but less than expected, which suggests a stabilisation, says ANZ’s Senior Asia Economist Betty Wang.
New Zealand manufacturing and construction sector output was softer than expected in Q2, reflecting weak domestic demand, says ANZ’s Senior NZ Economist Miles Workman.
Cheers
Bernard
PS: Look out next week for key US inflation data and the ECB’s next rates decision.
