China’s renminbi has strengthened to a four-month high on hopes for calmer US vs China relations and lower US market interest rates.
In part one of our bonus deep-dive interview, ANZ’s Head of G3 Economics Brian Martin explains the importance of the US pivot to massive infrastructure spending.
5 things to know
WTI oil fell 2.5% to US$75.90/bbl after OPEC+ delayed its upcoming meeting about further production cuts. The US 2-year yield rose 5 bps to 4.93% on firmer US data, which boosted the US$ vs the A$ and NZ$ overnight.
ANZ’s Head of Asia Research Khoon Goh explains why currencies such as the A$, NZ$ and yen have strengthened against the US dollar over the last week.
Khoon says the renminbi’s rise to a four-month high also reflects hope for calmer China-US relations after last week’s meeting of Presidents Xi Jinping and Joe Biden, and a more positive outlook for China’s property sector.
Sales of tents and awnings are up sharply in New Zealand because of growing (and desperate?) hope for a dry summer, says ANZ’s NZ Chief Economist Sharon Zollner.
Singaporean GDP growth strengthened to 1.4% in Q3. Khoon sees Taylor Swift’s visit in February further boosting a tourism recovery.
Cheers
Bernard
PS: Have a great day and look out tomorrow morning for part two of Brian Martin’s deep dive into the US pivot to industrial policy, and how it’s changing the long-run outlook for interest rates globally.
