The Fed is on track to cut this week, but the Bank of Japan is expected to hold. Markets will keep a close eye on Donald Trump’s meeting with Xi Jinping on Thursday, and fresh Australian inflation data will be the focus for the Reserve Bank of Australia.
In our Deep-Dive interview, ANZ Senior China Strategist Zhaopeng Xing details where China plans to invest in its new five year plan, and why that’s important.
5 things to know in 5 minutes:
US inflation figures on Friday night were slightly softer than expected, but not enough to change expectations for two more Fed rate cuts this year, including one later this week, says ANZ Group Chief Economist Richard Yetsenga.
The other big inflation number to watch this week is in Australia, where the Reserve Bank of Australia is in a different position to the Fed, says Richard.
Currency traders will also be watching the Fed closely this week, says ANZ Head of FX Research Mahjabeen Zaman.
The other big event this week is President Donald Trump’s scheduled meeting with China’s Xi Jinping on Thursday to try to make progress on a trade deal between China and the United States, says Mahjabeen.
Japan reported CPI inflation results on Friday that were in line with market expectations. The main focus is on relations between the new Prime Minister Sakae Takaichi and the Bank of Japan, which makes its rates decision on Thursday, says ANZ FX strategist Felix Ryan.
Cheers,
Bernard.
PS: Catch you tomorrow with a deeper preview of Australia’s third quarter inflation figures on Wednesday.
