The US dollar slides again, which nudges the Aussie dollar up again. How high can it go ahead of next week’s decision by the RBA and tomorrow’s key inflation data? And New Zealand’s current account deficit improves a lot.
In our Deep-Dive interview, ANZ Head of FX Research Mahjabeen Zaman looks at whether the Aussie dollar is about to break above its decade-long range against the Kiwi of 100 to 115 cents per Kiwi dollar.
5 things to know in 5 minutes:
The US dollar index fell again overnight and has fallen 6.5% in the last six months, thanks to growing expectations of Fed rate cuts, and underlying chatter about ebbing confidence in the independence of the Fed and sharply higher US Government bond issuance. That has boosted the Aussie dollar. ANZ’s Head of FX Research Mahjabeen Zaman looks at how much higher the Aussie could go.
Australia’s annual CPI inflation rate is expected to rise to 3.3% in August from 2.8% in July, in part due to the end of electricity subsidies. ANZ’s Senior Rates Strategist Jack Chambers says he’ll be watching building costs in particular.
Reserve Bank of Australia Governor Michele Bullock yesterday gave a couple of very mild hints suggesting a hold next week, says ANZ’s Head of Australian Economics Adam Boyton.
ANZ Chief Economist Sharon Zollner has spotted some good news in New Zealand’s national accounts on its current account deficit.
The Peoples Bank of China held its key Loan Prime Rate or LPR steady yesterday, as expected. A rate cut isn’t needed, yet, says ANZ’s Senior China Strategist Zhaopeng Xing.
Cheers,
Bernard.
PS: Catch you tomorrow with the latest on Australian consumer confidence.
