Global markets were volatile again overnight. Slightly stronger-than-expected US retail sales unleashed a bounce in US Treasury yields, but US stocks and the ‘risk’ currencies (Aussie and Kiwi dollars) held their gains.
In our bonus deep-dive interview, ANZ’s Senior Strategist in China ZhaoPeng Xing details the rise in the renminbi’s share of global currency and trade markets.
5 things to know
The US 10 year Treasury yield rose 11 basis points to 4.55%. The S&P 500 wobbled around its previous close. The Aussie dollar held its gains and was at 65.14 USc at 5 am AEST. The Kiwi was at 60.25 USc.
ANZ’s Head of G3 Economics Brian Martin says a 0.2% rise in the control group number for US retail sales showed strong momentum.
Brian says markets will now be watching Fed officials for direction ahead of next month’s FOMC decision, given the major data sets are in.
Australia’s wage inflation jumped to a record-high 1.3% in Q3, but ANZ Australia Senior Economist Catherine Birch says this was expected and likely to be the peak.
Softer-than-expected inflation data in New Zealand now makes a rate hike in February less likely, says ANZ NZ Economist Henry Russell.
Cheers
Bernard
PS: Have a great day and look out tomorrow for the detail from Australian jobs figures due later today.
