Much stronger than expected US jobs growth data on Friday night sent US bond yields sharply higher over the weekend.
In our bonus deep dive interview, ANZ’s Head of Asia Research Khoon Goh looks at a slump in the Indonesian Rupiah ahead of the presidential election there next week.
5 things to know
US nonfarm payrolls rose 353,000 in January, almost double the 183,000 expected. The 10 year Treasury yield jumped more than a dozen bps to 4.02%.
The jobs growth reinforces the caution about Fed rate cuts as early as March from Chair Jerome Powell, says ANZ’s Group Chief Economist Richard Yetsenga.
On Tuesday, the RBA will deliver a ‘triple treat’ of an expected hold in the cash rate, new forecasts and a news conference. Richard sees the RBA retaining a hawkish tone.
NZ consumer confidence appears to have bottomed out, says ANZ NZ Chief Economist Sharon Zollner.
NZ consumer confidence slumped in the last two years to below GFC and Covid lockdown levels, moving in tune with inflation surprises consumers hated, says Sharon.
Cheers
Bernard
PS: Catch you tomorrow with a deeper preview of the RBA decision and a look-ahead to New Zealand jobs on Wednesday.
