The US dollar stabilises with US bond yields after a surprise drop. Australian inflation is thrown around as electricity rebates roll off, while construction work shows hints of weakness. And Thailand cuts rates unexpectedly, with more cuts likely to come.
In our bonus deep dive interview, ANZ’s International Economist Kishti Sen considers the outlook for Pacific island currencies amid global trade wars.
5 things to know in 5 minutes:
The US dollar and the US 10-year yield stabilised overnight after falls on Wednesday, but US economic remains volatile. US homes sales fell 10.5% in January, worse than forecast. ANZ Head of G3 Economics Brian Martin says bad weather was a factor, and there are other more positive things on the horizon.
Australia’s January CPI indicator came in at 2.5% year-on-year, higher than ANZ Research expected, but slightly below the market forecast. ANZ Senior Economist Adelaide Timbrell says the rolling end to electricity rebates is complicating the data.
Adelaide says the stronger-than-expected inflation print fits with ANZ Research’s view the RBA will deliver only one more cut this year.
Australia’s partial Q4 GDP indicators are starting to come in. Construction work rose 0.5% in the quarter, although non-residential work was weaker.
The Bank of Thailand unexpectedly cut its official rate by 25 basis points to 2.0% overnight, citing disappointing economic growth. ANZ Asia Economist Krystal Tan sees one or two more cuts to a terminal range of 1.5% to 1.75%.
Cheers,
Bernard
PS: Catch you tomorrow with analysis of ANZ’s Business Outlook survey and whether it shows New Zealand’s economy is turning around.
