US consumer price inflation in August was a tad higher and stickier than expected, but the data overnight wasn’t enough to derail market expectations the Fed will hold next week.
In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh unpacks a surprise net outflow of Foreign Direct Investment (FDI) from Asia.
5 things to know
US core CPI inflation was 0.3% in August, a touch above consensus at 0.2%, but the 4.3% annual figure met market expectations. ANZ’s Head of G3 Economics Brian Martin says the ‘super core’ measure the Fed watches rose 0.4%, the most since March.
Markets see a two-thirds chance the ECB will hike again tonight, but Brian sees it holding to assess the fuller effects of its 375 basis points of hikes in a year.
ANZ’s Head of Australian Economics Adam Boyton expects Australian data later today to show unemployment edging down to 3.6% in August because of 30,000 new jobs.
New Zealand house prices rose in August for a third month running. ANZ’s Senior NZ Economist Miles Workman explains why.
ANZ’s Australian Economist Maddy Dunk says Australian renters are now feeling more pain in ANZ’s weekly consumer confidence survey.
Cheers
Bernard
PS: Look out tomorrow for the latest on the ECB’s decision overnight.
