Markets fall as traders wait on how dovish the Fed chair will be at Jackson Hole. The Reserve Bank of New Zealand is set to cut rates. Malaysia’s exports are set to face headwinds after a strong July.
In our Deep Dive interview, ANZ Commodities Strategist Soni Kumari discusses what’s been driving the gold price in recent months, and the outlook for the rest of 2025.
5 things to know in 5 minutes:
US stocks were weaker overnight, led by falls in large tech companies like Nvidia, amid a lack of economic data. It wasn’t one-way traffic however - the Dow earlier hit a new record high. Traders in general remain in wait and see mode ahead of US Fed Chair Jerome Powell’s Jackson Hole speech on Friday. ANZ Head of FX Research Mahjabeen Zaman says direction from Powell on where US rates are headed will be key.
The Reserve Bank of New Zealand is widely expected to cut its official cash rate by 25 basis points to 3% later today. ANZ New Zealand Chief Economist Sharon Zollner is watching for guidance on where rates are headed.
The last data out before the decision was New Zealand’s Q2 Producer Price Index. Both input and output prices rose 0.6%, well below the 2-3% moves in March. ANZ Senior Economist Miles Workman says there is disinflation in interest-rate sensitive industries.
ANZ Roy Morgan Australian consumer confidence was steady last week at 89.4. ANZ Economist Maddy Dunk says confidence among renters and mortgage holders improved, while it declined for outright home owners.
Malaysia’s exports rose 18% year on year in July - above expectations and above the 11% rise in imports. ANZ Economist Arindam Chakraborty says export growth to the US has been strong but appears to have peaked.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of the RBNZ’s decision later today.
