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