The Reserve Bank of Australia is expected to hold its cash rate at 3.6% later this afternoon. The Aussie dollar has rallied in anticipation of a rate hike next year. And China’s trade surplus hits US$1 trillion.
In our Deep-Dive interview, ANZ’s Head of FX Research Mahjabeen Zaman analyses the immediate outlook for the US dollar ahead of the Fed’s expected cut this week.
5 things to know in 5 minutes:
The Reserve Bank of Australia (RBA) is expected to hold its cash rate at 3.6% later today, with a hawkish tinge, says ANZ’s Head of Australian Economics Adam Boyton.
The Aussie dollar has already rallied in recent weeks in anticipation of a hawkish hold by the RBA, says ANZ’s Head of FX Research Mahjabeen Zaman.
Japan’s GDP fell at an annualised pace of 2.3% in the September and real wages fell for a 10th consecutive month in October. ANZ FX Strategist Felix Ryan says the data will be watched closely by a cautious Bank of Japan ahead of next week’s rates decision, which is currently expected to be a hike.
China’s exports rose 5.9% in November from a year ago, rebounding after a fall in October. That meant China’s annual trade surplus rose through US$1 trillion for the first time, says ANZ Economist Vicky Xiao Zhou.
New Zealand’s economy continues to show a few green shoots, says ANZ’s New Zealand Chief Economist Sharon Zollner, citing the latest retail spending data from ANZ credit and debit cards showing an 8.0% rise in durables spending in November from a year ago.
Cheers,
Bernard.
Catch you tomorrow with all the nuance and reaction from today’s decision by the Reserve Bank of Australia.
