Markets are holding tight ahead of US price data. Australia’s business conditions fall is okay for the RBA. India’s food prices rise, but inflation is close to forecast. There is good and bad news on New Zealand’s inflation front.
In our bonus deep dive interview, ANZ Chief Economist for Greater China Raymond Yeung says the recent shift in the Politburo’s property policy shows authorities are facing up to the reality of high inventories and low demand.
5 things to know:
Markets are in a tight holding pattern ahead of key US inflation data on Wednesday night. ANZ Head of FX Research Mahjabeen Zaman expects the US dollar to hold firm through the week.
NAB’s Business Confidence survey for April found another slide in conditions towards its long-run average, which ANZ Economist Maddy Dunk says is consistent with a slowdown, but not a particularly fast one.
India’s annual CPI inflation was 4.83% in April, which was close to expectations. ANZ Economist Dhiraj Nim says core inflation was steady at 3.2%.
There was some good news and some slightly concerning news for the RBNZ on the inflation front yesterday. Selected price indices for April were slightly stronger than expected, but inflation expectations measured in the RBNZ survey of forecasters fell, says ANZ Economist Henry Russell.
New Zealand’s manufacturing output contracted again in April, albeit at a slower rate, says ANZ New Zealand Senior Economist Miles Workman.
Cheers
Bernard
PS: Catch you tomorrow with further build up to the US CPI and the details of Australia’s Federal Budget tonight.
