5 in 5 with ANZ
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Tuesday: Aussie, Kiwi dollars fall below key levels
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Tuesday: Aussie, Kiwi dollars fall below key levels

Aussie dollar below 65 USc and NZ$ below 60 USc on strong rates-driven US dollar and hits to riskier commodity-led currencies from China's economic slowdown; US retail sales, Australian wages in focus

The Aussie and Kiwi dollars are down near nine-month lows this morning, thanks to a strong US dollar and concerns about China’s slowing economy.

In our bonus deep-dive interview, ANZ Asia Economist Krystal Tan details how El Nino is likely to affect food production and inflation.

5 things to know

  1. The Aussie dollar fell below 65 USc and the Kiwi dollar dropped under 60 USc overnight. ANZ’s Head of FX Research Mahjabeen Zaman sees a high rates-driven US dollar at work, along with China’s economic slowdown.

  2. Stock indices in Hong Kong fell as much as 2% on concerns about payment defaults by one of China’s largest wealth management product companies, says ANZ’s Chief Economist for Greater China Raymond Yeung.

  3. US retail sales are seen rising 0.5% growth in July, but could be lower, ANZ’s Senior International Economist Tom Kenny says.

  4. ANZ’s Head of Australian Economics Adam Boyton is forecasting data due today will show the Wage Price Index (WPI) rose 0.9% in the June quarter.

  5. Minimum wage rises are set to lift Australia’s WPI by a record-high 1.3% in the September quarter, Boyton says.

Cheers

Bernard

PS: Tomorrow we’ll hear how US retail sales and Australian wages data went.

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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.