US jobs growth is revised down, cementing Fed rate cut bets and sending the world’s reserve currency down further. Thailand and Indonesia hold rates, while Japan’s export data indicates some weakness in global demand.
In our bonus deep dive interview, ANZ Head of Australian Economics Adam Boyton analyses how Australia is tracking for a ‘soft’ economic landing after such a rapid rise in interest rates.
5 things to know:
The US dollar weakened further overnight after US jobs growth was revised 818,000 lower in the year to March. That supported expectations the Fed can cut rates in September. Also, Bank Indonesia held rates at 6.25%. ANZ Economist Krystal Tan says the governor reiterated scope for a cut in the December quarter.
The Bank of Thailand held rates steady at 2.5%. Krystal says the central bank took on a more cautious tone on downside risks.
Regional attention now turns to a rate decision in South Korea today and the signalling that might accompany an expected hold at 3.5%.
In Japan, a weaker Yen until last month helped lift exports 10.3% in July from a year ago. However, ANZ FX Analyst Felix Ryan says a 5.2% fall in export volumes does point to global economic headwinds.
ANZ Economist Maddy Dunk says this week’s ANZ-Roy Morgan Australia Consumer Confidence index shows households are feeling a boost from the stage three tax cuts.
Cheers
Bernard
PS: Catch you tomorrow with that South Korea rate review.
