The RBA is set for a hawkish hold decision tomorrow as oil and iron prices hit multi-month highs. Non-farm payrolls suggest the US economy is cooling to reassure the Fed.
In our bonus deep-dive interview, ANZ’s Senior Commodities Strategist Daniel Hynes says India’s booming EV production is electrifying demand for metals such as copper.
5 things to know
ANZ’s Head of Australian Economics Adam Boyton sees the RBA deciding on a “hawkish hold” tomorrow for the third consecutive month.
Iron ore rose to five-month highs over US$118/tonne over the weekend after authorities there unveiled a series of moves to support property last week. Daniel Hynes sees pockets of demand emerging in metals too.
US Non Farm Payrolls beat forecasts by a bit, but wages and unemployment data were soft. ANZ’s Head of G3 Economics Brian Martin sees the Fed holding next week.
US manufacturing contracted for the 10th consecutive month in August, but Brian sees encouraging signs in the best result since February.
The renminbi (CNH) rose to 7.26 to the US$ on Friday after the PBoC cut its FX RRR to 4% from 6%, encouraging China’s banks to buy renminbi.
Cheers
Bernard
PS: Look out for a full preview of the RBA’s decision tomorrow.
