Global markets are laser-focused on US jobs data this week to confirm the Fed can pinpoint a soft landing. Australia’s tax cuts are yet to show in retail sales growth. India’s GDP growth was below the Reserve Bank of India’s forecasts.
In our bonus deep dive interview, ANZ Australia Senior Economist Catherine Birch explains why lower headline inflation figures in Australia aren’t telling the full story.
5 things to know:
Global markets are watching the US economy this week on its final approaches to a soft landing where the Fed can start cutting without a sharp jobs slowdown. ANZ Group Chief Economist Richard Yetsenga explains why it’s taken the Fed a bit longer than originally expected.
Richard says US non-farm payrolls on Thursday will be a crucial milestone for the Fed as it zeroes in on a 25 basis point cut on September 18.
US Private Consumption Expenditure inflation data on Friday night cemented in confidence the US inflation slowdown is on schedule for the Fed to start cutting, says ANZ Head of G3 Economics Brian Martin.
Flat Australian retail sales figures for July show Stage 3 tax cuts haven’t started to flow through into consumer spending yet, but there are some early signs of movement, says ANZ Australia economist Maddy Dunk.
India’s GDP grew 6.7% in the June quarter from a year ago, which was below the RBI’s 7.1% forecast. ANZ Economist Dhiraj Nim says the RBI will be watchful.
Cheers
Bernard
PS: Catch you tomorrow as markets in Australia look ahead to GDP data on Wednesday.
