The US dollar surges against the euro and yen after political turmoil in France and Japan. Gold dips back below US$4,000/oz. NZ card spending shows signs of life. And the Philippines’ Central Bank unexpectedly cuts rates.
In our Deep-Dive interview, ANZ Economist Vicky Xiao Zhou looks at how China’s economy is set to perform this quarter and to the end of the year.
5 things to know in 5 minutes:
The US dollar strengthened 0.6% against the euro and another 0.2% against the yen overnight after changes of political leadership in France and Japan that are worsening worries about fiscal deficits and more bond issuance. Gold fell 2.1% to US$3,986/oz, ANZ Economist in London Henry Russell reports.
Philippines’ central bank unexpectedly cut its policy interest rate last night by 25 basis points to 4.75%. Economists and markets had expected a hold, says ANZ Asia Economist Arindam Chakraborty.
Spending with ANZ cards in New Zealand rose 0.4% in September, to be up 3.4% over the year. ANZ New Zealand Chief Economist Sharon Zollner says it’s encouraging that the rise was broad-based.
Sharon says it’s still tough out there for some households though. Card spending at second hand stores is very high. Although jewellery stores and tailors are also seeing a boost at the other end.
Japan released current account and trade data for August this week, showing the current account surplus fell 5%, putting pressure on the Yen. Meanwhile, goods exports were down 0.4%. ANZ FX Analyst Felix Ryan says export values have fallen in recent months as car exports to the US drop.
Cheers,
Bernard.
PS: Catch you next week as we look ahead to RBA meeting minutes and September jobs market data.
