The US dollar is stronger against the euro this morning after solid US consumer spending and inflation data contrasted with more moderate inflation signs from Europe.
In part two of a bonus deep-dive interview, ANZ’s Chief Economist for Greater China Raymond Yeung explains how China’s authorities are working to stop a slump in apartment prices that could threaten a ‘black swan’ event.
5 things to know
The euro weakened to US$1.08 after US PCE data showed real spending rose 0.6% in July and the core PCE deflator was up 0.2%. ANZ’s Head of G3 Economics Brian Martin sees the Fed holding later this month.
European inflation figures overnight were modest, with 0.3% core monthly inflation staying in line with the trend of the last four months. Brian sees the ECB holding in two weeks.
Australian private capex spending rose 2.8% in Q2, beating forecasts of around 1%. ANZ’s Head of Australian Economics Adam Boyton sees resilience.
China’s manufacturing PMI for August of 49.7 beat consensus of 49.2. ANZ’s Senior Strategist for China Zhaopeng Xing says the data indicates an improvement in growth momentum.
New Zealand business confidence improved in August, ANZ’s NZ Chief Economist Sharon Zollner reports from ANZ’s monthly survey.
Cheers
Bernard
PS: Look out for more from the US economy in Monday’s podcast. Brian Martin sees 170,000 new jobs in tonight’s non-farm payrolls data.
