All eyes are on US and Chinese export and inflation data over the next three days. Deflation is a growing prospect in China on weak consumer spending and slowing global trade.
In our deep dive interview, ANZ’s NZ’s Agriculture Economist Susan Kilsby explains how that weak Chinese consumer demand has hammered prices lower for dairy farmers in New Zealand.
5 things to know
ANZ forecasts Chinese exports and imports to be down around 10% in July from a year ago in data due later today, in another sign of slowing trade.
ANZ Indeed’s Australia job ads index bounced 0.4% in July, but the underlying trend is still weak and in line with the RBA’s cash rate pause, says ANZ’s Senior Australian Economist Adelaide Timbrell.
China’s annual CPI is expected to turn deflationary in data due tomorrow, says ANZ’s Head of Asia Research Khoon Goh.
China’s producer price data also due on Wednesday is forecast to show 4.2% deflation, reinforcing signs China is exporting deflation to Europe and the US.
US Federal Reserve Governor Michelle Bowman said overnight further rate hikes might be needed. The US 10 year treasury bond yield rose two basis to 4.08%.
Cheers
Bernard
