The yen slumped to 151.55 overnight after a Bank of Japan tweak to monetary policy yesterday was seen as too timid by not allowing interest rates to rise quickly enough.
In part two of our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh explains how strong US GDP growth is helping Asia’s economies.
5 things to know
The Bank of Japan finally tweaked its policy of holding bond yields under 1%, but markets think it should have tightened more, so the yen fell to a 15-year low of 151.55/US$ by 5am AEST. ANZ’s Head of FX Research Mahjabeen Zaman explains why the BoJ is so reluctant to tighten quickly
China PMIs for October were weaker than expected, says ANZ’s Chief Economist for Greater China Raymond Yeung.
Raymond also finds worrying deflationary signs in the PMIs.
Business confidence about New Zealand’s economy surged after the conservative National Party beat the Labour Government in the October 14 election. ANZ’s NZ Chief Economist Sharon Zollner explains the nuances.
Australia’s private sector credit growth of 0.5% in September was faster than market expectations, partly because homeowners repaid mortgages at a slower rate, as ANZ Australia Senior Economist Adelaide Timbrell explains.
Cheers
Bernard
PS: Look out for an expected hold by the Fed from tomorrow morning’s FOMC meeting, and a forecast softening of New Zealand labour market data due later today.
