China cut a key interest rate to support a sagging property market, although markets reacted mildly. Global markets await comments from three Fed speakers and FOMC minutes. The RBA will watch for sticky services inflation in wages data today.
In our bonus deep dive interview, ANZ Commodity Strategist Soni Kumari looks at a looming supply shortage for platinum, just as car makers and the hydrogen economy start using more of it.
5 things to know:
Chinese stocks barely rose yesterday after China cut its 5-year ‘Loan Prime Rate’ by 25bps to 3.95% in a bid to support a sagging property market. ANZ Senior China Strategist Zhaopeng Xing says authorities want to support the property market, but must balance that against the risks of reinflating a bubble.
The Australian dollar was up a bit at 65.60 USc at 4am Sydney/Melbourne time. Traders are waiting for three US Fed speakers and the release of minutes from the last FOMC meeting, says ANZ Senior Economist Tom Kenny.
The RBA’s February meeting minutes maintained a slightly hawkish stance, with a focus on sticky services inflation, says ANZ Senior Economist Blair Chapman.
Australian wages data out today will be closely watched by the RBA as it weighs up when it can cut rates later this year. ANZ Senior Economist Catherine Birch says the expected annual rate of 4.1% will be in line with the RBA’s forecasts.
In New Zealand, green shoots are emerging in discretionary spending seen in ANZ’s Merchant Cards data, which the RBNZ will be wary of, says ANZ New Zealand Chief Economist Sharon Zollner. Spending on golf courses rose 20%.
Cheers
Bernard
PS: Catch you tomorrow with reaction to Australian wages data and today’s Fedspeak.
