All eyes this week are on the latest tariffs drama and German election results, but in Australia, fresh inflation data will be in focus after the RBA’s rate cut. The US dollar stabilises. Japan’s inflation is strong, and New Zealand posts a trade surplus.
In our bonus deep dive interview, ANZ Group Chief Economist Richard Yetsenga looks at two key issues in geopolitics: whether Trump’s tariffs create inflation, and how the war in Ukraine might be resolved amid elections in Germany.
5 things to know in 5 minutes:
Australia’s initial inflation figures for January are expected to show headline annual inflation of 2.1%, down from 2.5% in December. They’ll be a key focus after the Reserve Bank of Australia started cutting rates last week, despite strong jobs growth, says ANZ Group Chief Economist Richard Yetsenga.
The Australian dollar is firm, despite that rate cut, says ANZ Head of FX Research Mahjabeen Zaman.
Mahjabeen says the US dollar’s stabilisation and occasional weakness after months of strength are a factor elevating the Australian dollar.
Japan’s inflation was stronger than expected in January, which suggests the Bank of Japan will keep hiking, says ANZ FX Analyst Felix Ryan.
New Zealand reported its first merchandise trade surplus since early 2021 in figures for January, says ANZ New Zealand Economist Henry Russell.
Cheers,
Bernard
PS: Catch you with a closer look at how China’s central bank is doing things off its balance sheet these days.
