Markets are focused on cautious comments from Fed Chair Jerome Powell about more rate cuts. Australia’s large and growing US trade deficit could spare it from metals tariffs. Australian consumer confidence in the here-and-now is at its lowest since September.
In our bonus deep dive interview, ANZ’s Senior Commodities Strategist Daniel Hynes looks into the prospects of gold going through the $3,000 an ounce mark.
5 things to know in 5 minutes:
There are suggestions Australia’s trade deficit with the US could see it receive an exemption. ANZ Economist Sophia Angala says the goods trade deficit with the US has historically been large.
US January CPI data due tonight is the first read since the FOMC held rates last month. ANZ Head of G3 Economics Brian Martin is expecting monthly CPI inflation of 0.3%, which he says would indicate a disinflationary environment.
ANZ Roy Morgan Australian Consumer Confidence dipped 1.8 points last week to 86.7 - off a 32 week high the week prior. Sophia says households’ confidence in their current financial conditions is at its lowest level since late September.
Sophia says there were some changes in confidence among different housing cohorts.
Australian business confidence rose six points in January to just below its long run average, according to NAB’s survey. ANZ Senior Economist Adelaide Timbrell says there was nothing too concerning in the survey, which is the last before the RBA’s rate decision next week.
Cheers,
Bernard
PS: Catch you tomorrow as we review how US CPI data is likely to influence what the FOMC next does with interest rates.
