US manufacturing and jobs figures are solid. Japan’s factory activity contracts. South Korea’s growth rebounds. And central bankers hit the speaking circuit Down Under.
In our deep dive interview, ANZ FX Analyst Felix Ryan analyses how sentiment around the world’s major currencies has shifted through the year.
5 things to know in 5 minutes:
The US economy produced some solid growth data overnight, The S&P Global Flash PMI showed the services sector expanded at a stronger pace in July, and weekly initial jobless claims figures suggested the labour market remains resilient, says ANZ Economist Bansi Madhavani.
A day after it secured a better-than-expected trade deal with the US, Japan’s manufacturing PMI showed a contraction in July, says ANZ Senior Economist Tom Kenny.
One economy watching the Japan deal closely is South Korea. Its GDP rose 0.6% in Q2 after a contraction in Q1. ANZ Economist Krystal Tan says semiconductor exports and fiscal stimulus helped. The big question now is whether Korea can achieve the same auto tariff rate as Japan.
In a speech yesterday, Reserve Bank of Australia Governor Michele Bullock said trimmed mean inflation may fall a little further in the June quarter. ANZ Head of Australian Economics Adam Boyton found a few interesting comments in the speech.
Reserve Bank of New Zealand Chief Economist Paul Conway also gave a speech, on how tariffs and global uncertainty will likely dampen medium-term inflation pressures - all else being equal. ANZ Senior Economist Miles Workman says there might be some positive fiscal offsets though.
Cheers,
Bernard.
PS: Catch you next week as we look ahead to the US Fed’s end-of-the-month rates. decision.
