Markets wobble after Trump threatens 25% tariffs on imports from Mexico and Canada, which forced the Aussie and Kiwi dollars down to near one-year lows. The RBNZ is expected to cut by 50 bps and the RBA is watching for disinflation progress.
In our bonus deep dive interview, ahead of today’s RBNZ decision, ANZ Senior Economist Miles Workman analyses last week’s growth warning from the New Zealand Treasury.
5 things to know:
Global markets were volatile overnight after Donald Trump threatened to impose 25% tariffs on all imports from Canada and Mexico on his first day in office. Asian stocks fell, US stocks wobbled and US Treasury yields rose 3-6 basis points. The Aussie and Kiwi dollars fell to near one-year lows. ANZ Head of G3 Economics Brian Martin says market attention now turns to US PCE inflation data tonight.
The Reserve Bank of New Zealand makes its final rates decision of the year today. ANZ New Zealand Chief Economist Sharon Zollner expects another 50 basis point cut to 4.25%.
Australia’s October CPI indicator today will be watched closely by the RBA for signs of continued disinflation.
ANZ Roy Morgan Consumer Confidence in Australia fell, while inflation expectations hit a three-month high, says ANZ Economist Sophia Angala.
Japan’s services producer prices rose 0.8% in October, the strongest since April and backing a Bank of Japan rate hike next month, says ANZ FX Analyst Felix Ryan.
Cheers
Bernard
PS: Catch you tomorrow with analysis of today’s RBNZ decision.
