US stocks rise as traders find comfort in Fed rate cut hopes. All eyes on how hawkish the RBA will turn today. Indonesia’s GDP is supported by election spending. Holiday travel data shows Chinese consumers may be coming out of their shells.
In our bonus deep dive interview, ANZ Chief Economist for Greater China Raymond Yeung analyses the outlook for the US dollar and Treasuries if Donald Trump wins the US Presidential election in November.
5 things to know:
US stocks are up on renewed hopes that the Federal Reserve can cut interest rates this year. The Aussie dollar was up 0.3%, while the Kiwi was up 0.05%. The Reserve Bank of Australia’s rate decision will be key for both. ANZ Head of Australian Economics Adam Boyton expects a much more hawkish statement.
The ANZ Indeed measure of Australian job ads rose 2.8% in April, having fallen 1% in March. ANZ Economist Maddy Dunk says a downward trend in job ads that was evident through most of 2023 stalled and troughed out in November.
ANZ’s Chief Economist for Greater China Raymond Yeung noticed a significant uptick in tourist numbers from mainland China in Hong Kong over the long Labour Day holiday weekend, suggesting some consumers and travellers there are coming out of their shells.
Indonesia’s annual GDP growth ticked up a touch to 5.11% in the year to March, supported by government spending in the lead up to February’s general election, as well as private consumption. ANZ Economist Krystal Tan says this helped offset weaker investment and exports.
Krystal expects Taiwan’s annual CPI for April to print around 2.5% today, with monthly inflation to pick up due to higher oil prices.
Cheers
Bernard
PS: Catch you tomorrow with reaction to the RBA’s rate decision and statement later today.
