Oil prices rise 3% as the Russia-Ukraine war escalates. US Treasury yields edge up as traders price a December rate cut by the Fed at 50-50. And RBA minutes today are being watched to see how hawkish the rate-setting board continues to be.
In our bonus deep dive interview, ANZ Senior Economist Miles Workman explains how the RBNZ’s more aggressive start to OCR cuts has shifted New Zealand economy’s growth outlook upwards.
5 things to know:
US stocks nudged higher overnight, but the big mover was oil, which rose 3% as the Ukraine-Russia conflict escalated. Meanwhile, ANZ Economist Bansi Madhavani says bets on a December rate cut by the US Fed, versus a pause, are now evenly split.
The Reserve Bank of Australia’s November Board minutes today are being watched closely for how hawkish the Board continues to be, says ANZ Head of Australian Economics Adam Boyton.
The yen weakened overnight to almost 155 to the US dollar from under 154 yesterday morning after comments from Bank of Japan Governor Kazuo Ueda, says ANZ FX Analyst Felix Ryan.
Thai GDP growth figures yesterday were surprisingly strong at 3.0% in the September quarter from a year ago, when the consensus was for growth of around 2.4%. ANZ Asia Economist Krystal Tan says Government spending was the swing factor.
New Zealand’s beef exporters to the United States are nervous about the potential imposition of a 10% across-the-board tariff on all imports promised by President re-Elect Donald Trump. ANZ New Zealand Chief Economist Sharon Zollner says New Zealand’s wine exporters are also vulnerable.
Cheers
Bernard
PS: Catch you tomorrow with analysis of those RBA board minutes today.
