Markets are mixed this morning as attention turns to the Fed’s rate decision tomorrow. Also, Australia’s Q2 inflation data today will provide a big clue to whether the Reserve Bank of Australia can cut rates next month.
In our deep dive interview, ANZ Economist Aaron Luk has been researching insolvencies in Australia’s accommodation and food services sector.
5 things to know in 5 minutes:
Financial markets were mixed this morning as the focus now turns to the US rates decision early Thursday morning Sydney/Melbourne time. ANZ Senior International Economist Tom Kenny says ANZ Research is expecting a hold.
The Bank of Japan has a rate decision on Thursday. Tom expects BoJ policy makers will also hold, to assess the effects of tariffs.
Australia’s Q2 CPI data today will be closely watched for signals of whether the Reserve Bank of Australia can cut rates in August. ANZ is expecting a headline annual rate of 2.1% and the trimmed mean at 2.7%. ANZ Head of FX Research Mahjabeen Zaman says a softer number could drag the Aussie dollar down.
ANZ Roy Morgan Australian Consumer Confidence rose 0.4 points to 86.7 last week. ANZ Economist Sophia Angala says the main upward movers were perceptions of current financial conditions and economic confidence.
However, Sophia says that upward momentum in confidence has stalled recently.
Cheers,
Bernard.
PS: Catch you tomorrow with the FOMC’s rate decision.
