The US$ starts the week strong vs the A$, NZ$ and yen after a dovish BoJ hike and markets seeing fewer Fed rate cuts this year. Market attention is on Australian inflation data on Wednesday for signs on whether the RBA can cut in November.
In our bonus deep dive interview, ANZ Senior Commodities Strategist Daniel Hynes visits China and finds surprisingly resilient demand for iron ore.
5 things to know:
Global interest rates are entering a new phase where central banks move in different directions, says ANZ Group Chief Economist Richard Yetsenga.
The yen remains weak after last week’s dovish hike by the Bank of Japan, says ANZ Economist Bansi Madhavani.
The BoJ’s hike doesn’t necessarily signal a series of hikes, but Japan’s economy is getting back on track, says Richard.
In data due on Wednesday, Australia’s annual CPI inflation rate is expected to rise to 3.5% in February from 3.4% in January, says Richard.
He says the RBA remains on track for a cut in November.
Cheers
Bernard
PS: Catch you tomorrow with a look ahead to key US inflation data on Thursday night.
