5 in 5 with ANZ
5 in 5 with ANZ
Thursday: Yields reverse after firm US retail sales
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Thursday: Yields reverse after firm US retail sales

US 10-year bounces to 4.55% after firmer-than-forecast US retail sales; All eyes now on Fed officials; A$ & NZ$ hold gains; Record-high Australian wage inflation; Zhaopeng Xing on the renminbi's rise

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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.