US manufacturing data is weaker than expected, reinforcing expectations of a Fed rate cut next week. That’s dragging on the US dollar. But the Kiwi dollar is doing well on fresh talk rates could rise next year.
In our Deep-Dive interview, ANZ New Zealand Senior Economist Matt Galt sees house prices rising by a relatively slow 5% next year.
5 things to know in 5 minutes:
ISM data showed the US manufacturing sector contracted in November at its fastest pace this year, and worse than market expectations. This points to more Fed rate cuts, says ANZ’s Head of G3 Economics Brian Martin.
ANZ’s Head of FX Research Mahjabeen Zaman says fresh US data is tending to drag on the US dollar, with the broad swathe of consumers not all doing well.
ANZ Australia Senior Economist Adelaide Timbrell says wages and salaries component of GDP data and the sales of goods and services across industries were stronger than expected, but company profits and inventories are likely to have detracted from growth.
The Kiwi dollar was a big rise last week, thanks to comments from the Reserve Bank of New Zealand confirming the end of its easing cycle, and renewed discussion about when rates might start rising again, possibly by the end of 2026, says Mahjabeen.
Building consents in New Zealand are rising again, ANZ New Zealand Senior Economist Matt Galt says.
Cheers,
Bernard.
Catch you tomorrow with a closer look at the prospects for Asian currencies next year with ANZ’s Head of Asia Research Khoon Goh.
