China reported a return to CPI inflation in August, but it wasn’t quite as big a bounce as forecast. The strong US$ is seen putting Asian currencies under pressure again this week.
In our bonus deep-dive interview, ANZ’s Group Chief Economist Richard Yetsenga explains why China’s many smaller structural reform measures are combining to turn into a more substantial set of stimuli.
5 things to know
China’s CPI inflation rose 0.1% in August, having fallen 0.3% in July. Economists had expected a 0.2% rise.
ANZ’s Head of G3 Economics Brian Martin sees the ECB holding its key rates on Thursday night, despite hawkish comments from some governors.
US CPI data for August on Wednesday night is expected to show 0.5% headline inflation and 0.2% core inflation. Brian is also watching US auto worker demands for pay hikes totalling 46%.
The US dollar is seen staying firm against Asian and Australasian currencies this week, with US economic strength diverging from weaker growth in Europe and Greater China.
Vietnam has become the largest buyer of Australia’s cotton exports, says ANZ’s Head of Food, Beverage and Agribusiness insights Michael Whitehead.
Cheers
Bernard
PS: Look out tomorrow for a preview of New Zealand’s PREFU (Pre-Election Fiscal Update) from New Zealand’s Treasury.
