The US Government shut down overnight and private jobs data is weak, so bond yields fell and gold rose. The Reserve Bank of India holds rates, but is seen cutting again soon. And Australian house prices jump in September.
In our Deep-Dive interview, ANZ International Economist Kishti Sen analyses what’s been supporting Papua New Guinea’s currency, and how a wave of foreign investment is set to help the nation’s economy.
5 things to know in 5 minutes:
US stocks were steady overnight, welcoming hopes for more Fed rate cuts after the ADP private jobs report showed a surprise fall of 32,000 in September, ahead of the key non-farm payrolls report due tomorrow night. Gold hit a new record high of US$3,922 overnight. Meanwhile, the Reserve Bank of India held its benchmark rate overnight at 5.5%, as expected, but ANZ Economist Dhiraj Nim says the RBI’s lowering of its growth and inflation forecasts was important.
Australia’s capital city house prices rose 0.9% in September, the strongest monthly growth since late 2023. ANZ Economist Maddy Dunk says Darwin is the stand-out with prices up over 13% this year.
Indonesia’s headline inflation ticked up to 2.65% year on year in September, driven by food prices. ANZ Economist Krystal Tan says core inflation was weaker at 2.19%, indicating underlying demand is contained.
Indonesia’s annual export growth slowed to 5.8% in August from 10% in July, with a slowdown in growth of exports to the US. Meanwhile, South Korea’s September export growth of 12.7% was overstated by more trading days this year - on an average daily basis it fell 6% on weakening US exports, Krystal says.
New Zealand residential building consents rose 6.9% in August from a year ago - the second monthly increase in a row. ANZ Senior Economist Matt Galt says while the data can be volatile, the result was on the stronger side.
Cheers,
Bernard.
PS: Catch you tomorrow with the latest Australian household spending data as debate ramps up on whether the RBA will cut rates in November.
