US inflation is slightly weaker than expected. The Aussie dollar is riding higher after the RBA’s rate hike. Nickel prices are stabilising after Indonesia confirmed supply cuts. And Malaysia’s GDP growth beats forecasts.
In our Deep-Dive interview, ANZ Chief Economist for Greater China Raymond Yeung starts unpacking his 10 themes for the year of the fire horse.
5 things to know in 5 minutes:
US headline inflation in January of 0.2% was slightly below expectations, although core inflation of 0.3% for the month and 2.5% from a year ago was in line with forecasts. ANZ Head of G3 Economics Brian Martin says core goods prices were unchanged, indicating tariff pressures were contained.
This month’s rate hike by the Reserve Bank of Australia has helped to boost the Aussie dollar, but it’s also benefiting from the prospects for another rate cut by the Fed, and a feeling it’s a long way from geopolitical drama, says ANZ’s Head of FX Research Mahjabeen Zaman.
The price of nickel has risen by over US$3,000 a tonne to as high as US$18,000 this year in anticipation of big cuts in supply by the world’s largest producer: Indonesia. The cuts were confirmed last week, which prompted a buy-the-rumour-sell-the-fact fall of US$1,000/tonne to US$17,000. ANZ Senior Commodity Strategist Daniel Hynes now sees prices stabilising.
Malaysian GDP rose 6.3% in the December quarter from a year ago, which was above market expectations, says ANZ Economist Krystal Tan.
Krystal says the case for Malaysia’s central bank to roll back last July's pre-emptive rate cut is getting stronger.
Cheers,
Bernard.
PS: Catch you tomorrow with part two of Raymond’s year of the fire horse preview.
