US non-farm payrolls were mixed, allowing markets to keep betting the Fed will start cutting in June. The ECB may cut before the Fed. The yen is rising on talk the Bank of Japan may finally hike. RBA watchers are focused on business confidence this week.
In our bonus deep dive interview, ANZ Economist Sanjay Mathur looks at how ASEAN economies can overcome a fading demographic dividend by investing in ICT infrastructure and human capital to keep GDP growing faster than 5%.
5 things to know:
US jobs grew 265,000 in February, beating expectations for 200,000, but higher unemployment and moderate wage growth allowed markets to keep betting the Fed can cut in June. ANZ Group Chief Economist Richard Yetsenga sees a July cut as more likely.
Richard says the ECB may even be able to cut before the Fed.
The yen is rising on talk the Bank of Japan will hike its policy rate to 0% just as the US dollar weakens with Fed cuts, says Richard.
Australia’s RBA-watchers are focused this week on business confidence figures. Richard sees the risks skewed towards a cut earlier than November, rather than later.
Malaysia’s central bank held its policy rate, but surprised by commenting that the Ringgit was undervalued, says ANZ economist Debalika Sarkar.
Cheers
Bernard
PS: Catch you on tomorrow with a closer look at China’s demand for commodities.
