Global markets are digesting the Fed’s super-sized cut and the Bank of Japan’s decision to hold its rates, as expected. Trading and investing focus now turns to RBA rates decision on Tuesday. China’s yuan surges as exporters bring cash home.
In our bonus deep dive interview, ANZ Asia Economist Krystal Tan analyses how lower oil prices are helping some South East Asian economies more than others.
5 things to know:
Global stocks closed up mildly on Friday as investors digested the Fed’s big decision and the Bank of Japan’s slightly dovish hold. ANZ Group Chief Economist Richard Yetsenga says the Fed has some more explaining to do.
Richard says the Fed has now flipped to focusing on the jobs market, rather than inflation.
The main focus for markets in Australasia this week is the RBA’s monthly cash rate decision tomorrow. Markets see the rate on hold.
China’s yuan rose through 7.04 per US$ on Friday as exporters moved to repatriate cash stored overseas, says ANZ Asia’s Head of Research Khoon Goh.
Richard explains why Australia is the exception to the trend of falling official interest rates, for now at least.
Cheers
Bernard
PS: Catch you tomorrow with a closer preview of the RBA decision.
