US markets are mixed after weak jobs data. Australian GDP shows stronger inflation signals for the RBA. South Korean growth rises. And India’s central bank looks unlikely to aggressively defend a falling rupee.
In the first of two Deep-Dive interviews into the outlook for Asian currencies in 2026, ANZ Head of Asia Research Khoon Goh analyses the general trends and domestic drivers to watch out for.
5 things to know in 5 minutes:
US ADP private sector payrolls fell 32,000 in November, which was well below the market consensus for a small rise. ANZ Economist in London Henry Russell says the data supports the case for more easing by the Fed.
Australia’s economy grew 0.4% in the third quarter, which was below market expectations for 0.7%. But ANZ Senior Economist Adelaide Timbrell says there were still some hot spots.
Adelaide says strong unit labour cost growth and slow productivity growth would likely have got the Reserve Bank of Australia’s attention as they point to inflation pressure.
South Korea’s third quarter GDP grew slightly faster than initially expected, at 1.3%, according to data released yesterday. ANZ Economist Krystal Tan says it was the fastest quarterly growth since late 2021.
India’s rupee has depreciated below the psychological barrier of 90 to the US dollar in recent days. ANZ Economist Dhiraj Nim says while the Reserve Bank of India will be moderating the decline, they are unlikely to aggressively defend any certain level.
Cheers,
Bernard.
Catch you tomorrow with a look at Australia’s latest trade and household spending data.
