- More China 'crackdowns' on private firms ahead?
- FOMC response snippet - March hike and much more to follow
- WSJ: Facebook’s Cryptocurrency Venture to Wind Down, Sell Assets
- China, Russia take another step closer, to strengthen coordination on Asian affairs
- China Industrial Profits for December 2021: 4.2% y/y (vs. prior 9.00%)
- US stock index futures have lost ground during Globex trade
- PBOC sets USD/ CNY mid-point today at 6.3382 (vs. estimate at 6.3333)
- Surging NZ inflation - RBNZ expected to hike at least another 7 times
- Australia terms of trade data for Q4 2021
- Australia – Westpac leading indicator for December 0% m/m (prior +0.12%)
- UK car production in 2021 fell to its lowest level since 1956
- US State Dept says Nord Stream 2 will not move forward if Russia invades Ukraine
- Reserve Bank of New Zealand monetary policy meeting on February 23 - risk of +50bps
- BlackRock on the FOMC - Fed signaling an intent to ease off the gas and not hit the brake
- South Korean government minister says will act to stabilise market if needed
- US State Dept says Nordstream 2 will not move ahead if Russia invades Ukraine
- Noth Korea fires unidentified projectile toward East Sea
- Reuters poll says RBA expected to first hike rates in November 2022
- Reserve Bank of Australia rate hikes forecast - a longer and higher cycle
- FOMC response - "Fed will likely need to hike more than the market is currently pricing"
- NZD little changed after the Q4 CPI data
- New Zealand Q4 2021 CPI 1.4% q/q ( expected 1.3%)
- Trade ideas thread - Thursday 27 January 2022
- ICYMI - German Economy Minister Habeck says more needs to be done to protect gas supply
- US stocks end another volatile session with losses
Reverberations from the hawkish Federal Open Market Committee statement and from Chair Powell at his press conference continued in Asia time today. Yields on UST were firm and higher.
EUR, GBP, CHF all traded lower against the US dollar. USD/JPY rallied early to above 114.70 but subsided a touch from those highs to retest 114.50.
AUD, NZD and CAD all lost ground.
We had data from New Zealand today, a 30+ year high for y/y CPI, with very broadly-based price rises across sectors in the economy. The implication for the Reserve Bank of New Zealand is confirmation of rate hikes still to come and probably at even faster rate to an even higher end point (data dependent ahead of course, but based on today’s CPI result seemingly a lock).
As mentioned NZD/USD fell on the session. It barely gained a handful of tics on the surging inflation data before dropping away.
Also dropping away were US equity index futures on Globex trade. Locally, Japan, Hong Kong, China and Australian shares all slumped.
NZ inflation (graph via Goldman Sachs):
