The yen and the renminbi are near record lows this morning vs the US dollar as the king of currencies is getting even more of a tailwind from higher bond yields.
In our bonus deep-dive interview, ANZ’s Senior Economist for China Betty Wang explains the shift toward a new public housing model in China that looks a lot like the one used for the past 60 years in Singapore.
5 things to know
China’s renminbi or CNH is testing its all-time lows at 7.33 per US$ after the People’s Bank of China intervened to fix a record 1,157bps away from expectations. ANZ’s Head of FX Research Mahjabeen Zaman says all eyes are now on the PBoC as it tries to limit the currency’s fall.
Australia’s GDP grew 0.4% in Q2, in line with ANZ’s forecast. ANZ’s Head of Australian economics Adam Boyton points to an upwards revision to Q1 as a sign the economy isn’t slowing quite as much as some think.
The yen is under enormous pressure at 147.7 yen this morning, despite a threat of intervention yesterday, says Mahjabeen.
Adam says it’s worth looking through the noise in Australia’s poor productivity figures in Q2.
Global dairy prices may have bottomed out because a wet winter and a dry summer ahead in NZ are limiting output, says ANZ’s NZ Agricultural Economist Susan Kilsby.
Cheers
Bernard
PS: Look out tomorrow for a deep dive on the Bank of Indonesia’s efforts to support the rupiah.
