US stocks weaken ahead of Fed rate decision. Australian businesses grow gloomier, but the RBA still has a headache.
In our bonus deep dive interview, ANZ Head of Australian Economics Adam Boyton takes us through ANZ Research’s call change for when the RBA will begin rate cuts.
5 things to know:
US stock markets were trading down this morning as investors brace for US CPI data and the FOMC’s rate decision. ANZ Head of G3 Economics Brian Martin expects FOMC members to be patient.
Headline business confidence in Australia turned negative in May, according to the monthly NAB survey. ANZ Economist Maddy Dunk says this fits with the slower GDP print last week.
Maddy says there’s been a divergence in confidence between services industries, and those that are more sensitive to interest rates.
China’s CPI later today is being watched for signs that domestic demand is improving, says ANZ Senior China Strategist Zhaopeng Xing.
The Philippines central bank Governor says there is still a chance of a Q3 rate cut after inflation rose last week to within a whisker of the 4% upper target band limit, says ANZ Economist Arindam Chakraborty.
Cheers
Bernard
PS: Catch you on tomorrow with detail from the US CPI data.
