The yen has surged in the last 24 hours on talk the Bank of Japan may pivot away from very low interest rates. The renminbi (CNH) jumped after the PBoC threatened intervention.
In our bonus deep-dive interview, ANZ’s NZ Senior Economist Miles Workman explains what a PREFU is and why it matters.
5 things to know
China’s CNH jumped to 7.30/US$ from 7.36 after the PBoC threatened to intervene, and after another record fix, says ANZ’s Head of FX Research Mahjabeen Zaman.
The yen is sharply higher after the Governor of the Bank of Japan suggested a pivot to higher rates was near, which pushed the 10 year yield up to 0.71%.
The A$ and NZ$ are firm over 64 and 59 USc respectively as the US dollar weakened in the face of the yen surge. The euro is up too.
ANZ’s India Economist Dhiraj Nim is watching for an easing of core food inflation in CPI data later today.
A drought-driven drop in US cattle numbers has boosted demand for Australian beef exports, Head of Food, Beverage and Agribusiness insights Michael Whitehead.
Cheers
Bernard
PS: Look out tomorrow for a deep-dive interview with Michael Whitehead into a massive change in Australian farm land use to growing grain, rather than wool and sheep meat.
