The US dollar strengthened again overnight to over 146 yen, thanks to another surge in the 10-year Treasury yield to 4.35% ahead of a key Fed speech on Friday.
In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh explains why Vietnam’s economy is recovering after a slow start to 2023.
5 things to know
The US dollar rose to a one-year high vs the yen overnight on higher US bond yields. Currency markets are wary of BoJ intervention over 146 yen. ANZ’s Head of FX Research Mahjabeen Zaman cites hawkish talk about the Fed.
China surprised markets again yesterday by leaving a key five-year prime lending rate unchanged. ANZ’s Senior China Strategist Zhaopeng Xing says the PBoC wants to avoid reducing bank margins too much.
German PPI deflation of 6% in July was deeper than consensus for 5.1%, reinforcing signs a firm US economy is diverging from China and Europe.
ANZ’s Senior Commodities Strategist Daniel Hynes is watching a strike vote in North-Western Australia tomorrow in case it shuts down 10% of global LNG supply.
New Zealand retail sales data from ANZ is showing a slowdown in recent weeks in response to higher mortgage rates, which will reassure the RBNZ, says ANZ’s NZ Chief Economist Sharon Zollner.
Cheers
Bernard
PS: Have a great day. Look out tomorrow for more on how currencies in Asia and the Pacific are moving on the higher-for-longer US rates talk.
