The Kiwi dollar falls 1.3% after the RBNZ pivots away from rate hike talk. The Aussie dollar is down 0.75% after softer-than-expected inflation data. The S&P 500 is flat ahead of key US inflation data tonight.
In our bonus deep dive interview, ANZ Commodities Strategist Soni Kumari explains why central banks are buying more gold, and why it will continue to push the precious metal’s price towards US$2,200/oz by year-end.
5 things to know:
New Zealand wholesale interest rates and the Kiwi dollar fell after the RBNZ held the OCR at 5.5% and pivoted away from talk of potential hikes. ANZ New Zealand Chief Economist Sharon Zollner says the RBNZ’s comments that inflation risks were more balanced were surprising.
The RBNZ was being watched globally for signs of whether central banks faced with sticky domestic inflation might hike further. Reserve Bank Governor Adrian Orr says rates around the world may have to stay on hold for longer.
Australia’s CPI indicator was below expectations for January, holding at 3.4% annually. ANZ Senior Economist Catherine Birch says the monthly indicator is underweight in key services and non-tradables data of interest to the RBA.
ANZ Chief Economist for Greater China, Raymond Yeung says Hong Kong’s decision late yesterday to slash property curbs is the right move.
India’s economy is expected to have grown 6.5% annually in the December quarter, supported by momentum in construction, while a poor monsoon season crop could be a drag, ANZ Economist Dhiraj Nim previews tonight’s data.
Cheers
Bernard
PS: Catch you tomorrow with the last key US inflation data ahead of the FOMC’s March 20 rate decision. Happy Leap Year Day for those ‘young’ people with birthdays today.
