New stimulus moves for China’s property developers are bolstering the commodity currencies, including the Aussie and Kiwi dollars this morning.
In our bonus deep-dive interview, ANZ Australia economist Maddy Dunk digs through Australian state GDP figures to find the winners and losers.
5 things to know
The A$ was buoyant at 65.66 USc and the NZ$ was at a three-and-a-half month high of 60.56 USc at 5 am Sydney/Melbourne time after China unveiled two new stimulus measures for its property sector.
Board meeting minutes out yesterday reinforced how hawkish the RBA has become. ANZ’s Head of Australia Economics Adam Boyton sees the RBA on hold, with chances of a hike still higher than chances for a cut.
Adam says the RBA is wary of businesses and consumers embedding higher inflation expectations.
China’s authorities have jointly called on banks to lend steadily and counter-cyclically to troubled property developers. ANZ’s Chief Economist for Greater China Raymond Yeung says this boosts hopes for 5% GDP growth next year.
The PBoC is also planning 1 trillion yuan of new lending through a special facility designed in 2014 to fund redevelopment of shanty towns.
Cheers
Bernard
PS: Have a great day and look out tomorrow morning for part one of a deep dive with ANZ’s Head of G3 Economics Brian Martin into how US industrial policy is changing the long run outlook for interest rates globally.
