Global markets start the week nervously eyeing the Middle East and key US data later this week. Asian currencies are jittery near record lows against a rampant USD. The RBA will hope for lower inflation data in Australia on Wednesday
In our bonus deep dive interview, ANZ Commodity Strategist Soni Kumari explains why silver is finally jumping on gold’s fast-rising coat-tails.
5 things to know:
Markets are on uneasy tenterhooks after Israel’s limited strike on Iran and ahead of key US GDP and inflation data on Thursday. ANZ Group Chief Economist Richard Yetsenga says watch the bond markets closely.
Asian central banks are also focused on the US dollar’s strength after a range of currencies hit record lows last week. Richard details just how much pressure is on those currencies.
Japanese inflation data on Friday was a bit weaker than expected, dropping to 2.7% in March from 2.8%. ANZ FX Analyst Felix Ryan says the data isn’t likely to shift the Bank of Japan when it makes its decision this Friday.
The European Central Bank is seen as the one central bank most likely to disconnect from the Fed’s rate cycle, and to do it first, says ANZ Head of G3 Economics Brian Martin.
Australia’s quarterly inflation rate is expected to rise to 0.8% in Q1 data on Wednesday from 0.6% in Q4, but the annual rate is seen dropping to 3.5% from 4.1%. Richard looks at how the RBA might view that.
Cheers
Bernard
PS: Catch you tomorrow with a deep dive interview with Richard Yetsenga on Australia’s housing supply.
