The Fed cuts and signals more to come. Australia’s jobs figures today will be watched for signs of strength by the RBA. And New Zealand’s economy is expected to have gone backwards in Q2.
In our Deep Dive interview, ANZ Senior Commodities Strategist Daniel Hynes reviews how the global oil trade has shifted following Western sanctions being placed on Russia.
5 things to know in 5 minutes:
The US Federal Open Markets Committee has just cut the Federal Funds rate by 25 basis points to a target range of 4%-4.25%. The ‘dot plot’ of projections indicates another 50 basis points of cuts in 2025 and one further cut in 2026. ANZ Economist Bansi Madhavani says the Fed is picking a modest growth recovery next year and no recession.
Indonesia’s central bank unexpectedly cut its benchmark rate overnight by 25 basis points to 4.75%. ANZ Economist Krystal Tan says a hold was expected due to an underperforming currency, but that Bank Indonesia’s focus has turned to growth.
Australia’s August jobs market report today will be watched by the Reserve Bank of Australia (RBA) for signs of strength. ANZ Economist Aaron Luk expects jobs growth of 32,500 in the month and a steady unemployment rate of 4.2%.
New Zealand’s June quarter GDP data is set to show the economy went backwards in the second quarter. ANZ Economist Matthew Galt is expecting a 0.4% contraction. which is slightly above the Reserve Bank’s 0.3% forecast last month.
Japan’s exports contracted for the fourth month in a row in August. ANZ FX Strategist Felix Ryan says tariffs have weakened exports of cars and steel to the United States.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of those Australian jobs figures and New Zealand Q2 GDP data.
