Australia’s ANZ-Roy Morgan consumer confidence registers second straight weekly loss, inflation expectations stable
MAS likely to adopt further easing to a neutral policy by next policy review in April 2020, says ANZ Research
Fed’s dovish stance and balance sheet re-expansion likely to weigh on dollar in months ahead, says Scotiabank
KRW likely to recoup more of year-to-date losses along with yuan appreciation in coming weeks, says Scotiabank
Australian bonds suffer tracking U.S. Treasuries on hopes of successful Brexit deal; September labour report eyed
Australian bonds flat in muted session after market sentiments improve following breakthrough Brexit deal
Australian bonds slump after U.S.-China trade tension disturbs investors once again; Sep labour report disappoints
Australia’s rise in September employment remains smallest in seven months; jobless rate likely to drift higher in near-term
EM Asian currencies likely to rally further during rest of September, remain susceptible to Fed’s monetary policy stance: Scotiabank
The emerging market Asian currencies are expected to rally further during the rest of September, while remaining susceptible to the Fed’s monetary policy stance and developments in the renewed US-China trade talks, according to the latest research report from Scotiabank.
The major central banks remain on track for further monetary easing, although the market has scale back some expectations of future Fed rate cuts amid recently easing trade tensions between the US and China.
More Fed monetary easing is needed to help weather the economic downturn, via reducing both risk-free interest rate and risk premium to bolster US stock markets. As consumer spending accounts for more than two-thirds of the US economy, the so-called wealth effect has a significant implication for US economic expansion.
According to the St. Louis Fed chart, there has been a significant shift in US household income to capital (ownership of businesses, land and assets) from labor (hourly wages and salaries).
"In the months ahead, US consumer confidence could start to fall finally amid falling ISM manufacturing PMI, demanding more Fed rate cuts. The US and China have extended an olive branch mutually, improving risk sentiment across the markets. The 10-year UST yield is likely to head for and reach the 2 percent mark before long," the report further commented.