US consumer confidence dips, but the US dollar rises as a Fed Governor says she’s not ruling out rate hikes. Australia’s inflation rate is set to tick up May, while consumer confidence held steady despite talk of higher interest rates.
In our bonus deep dive interview, ANZ Senior Commodity Strategist Daniel Hynes looks behind the headlines of the largest copper glut in China in four years.
5 things to know:
Global markets were mixed overnight. European equities fell ahead of French elections, while US stocks rose despite consumer confidence edging down. ANZ Economist Bansi Madhavani says consumers’ future expectations weakened.
The US dollar firmed overnight as Fed Governor Michelle Bowman said she would not rule out rate hikes if inflation progress stalled.
The ANZ-Roy Morgan survey of Australian consumer confidence was steady last week, which was surprising, ANZ Economist Maddy Dunk says, given headlines about the RBA considering a rate hike.
Australia’s CPI inflation rate is expected to rise to 3.8% annually in May from 3.6% in April. Core inflation is forecast to drop slightly to 4%. ANZ Senior Economist Catherine Birch says seasonal effects often drag monthly prices down in May.
Malaysia’s core CPI inflation rate was steady at 1.9% annually in May. The annual headline rate rose to 2% from 1.8% in April and was slightly above expectations. ANZ Economist Arindam Chakraborty says utilities and transport inflation drove the rise.
Cheers
Alex (standing in for Bernard, who’s on a mid-winter break this week)
PS: Catch you tomorrow with Australia’s May CPI data and what it could mean for the RBA.
