US consumer confidence slumps, but markets are firm, hopeful the Fed can cut, but that may be a while off. Asian markets will watch key economic data from China today, and ANZ Research has lifted its New Zealand inflation forecast a bit.
In our deep-dive interview, ANZ’s Head of FX Research Mahjabeen Zaman takes a closer look at Moody’s downgrade of the US sovereign credit rating on Friday, due to high and fast-growing US Government debt.
5 things to know in 5 minutes:
US consumer confidence fell in May to its second lowest level on record, says ANZ Economist Bansi Madhavani.
Bansi says the Fed will still be cautious before cutting.
The focus in Asian trade today will be on Chinese economic data for April, says ANZ’s Chief Economist for Greater China Raymond Yeung.
Raymond says the current pause in higher tariffs between the United States and China does increase the chances China’s GDP will do better than his current forecast for 4.2% this year, but it’s still too early to formally raise the forecast.
ANZ Research has increased its forecast for New Zealand’s June quarter CPI inflation to 0.6% from 0.4% after some solid partial indicators in April and an update to the way Statistics NZ measures vehicle licensing fees, says ANZ Senior Economist Miles Workman.
Cheers,
Bernard
PS: Catch you tomorrow with a final preview of the RBA’s cash rate decision, which is widely expected to be a cut of 25 basis points.
