NEW ZEALAND: ANZ Business Survey Signals Continued Lacklustre Recovery
Jul-30 01:27
The ANZ survey showed little change in business confidence and the outlook in July with the former rising 1.5 points to 47.8 but the latter falling 0.3 to 40.6. It signals that the recovery continues but at a gradual pace. Inflation expectations were stable at 2.7% for the fourth consecutive month but up from February’s 2.5%. Other price/cost components eased, which should reassure the RBNZ ahead of the August 20 rate decision.
- ANZ notes that most of the forward-looking components of the survey were little changed signalling that the economic recovery is unlikely to accelerate over Q3. Profits were steady around 17, employment rose 1 point to 11.8 (above 7 series average) and investment was stable around 20 (also above average). Exports were slightly higher at 14.6 after 13.9.
NZ ANZ business activity outlook vs confidence
Source: MNI - Market News/LSEG
- ANZ expects the RBNZ to become more concerned that medium-term inflation will be too low and as such there will be “more monetary easing than is currently envisaged”.
- Business pricing intentions moderated to 43.5 from 46.3, the lowest since December. Costs were also down at 75.9 after 79.0 but remain above the late 2024 low.
- Residential construction moderated to 16.7 from 44.8.
NZ ANZ business price/cost components
Source: MNI - Market News/LSEG
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CHINA: Central Bank Injects CNY111bn via OMO
Jun-30 01:23
- The PBOC issued CNY331.5bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY220.5 bn
- Net liquidity injection CNY111 bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.69%.
- The China overnight interbank repo rate is at 1.45%, from the prior close of 1.29%.
- The China 7-day interbank repo rate is at 1.40%, from the prior close of 1.70%.
CNH: USD/CNH Lower Post USD/CNY Fixing
Jun-30 01:22
The USD/CNY fixing printed at 7.1586, against a Bloomberg market consensus of 7.1704.
- This fixing continues the recent downtrend and is the lowest result since Nov last year. The fixing error was close to unchanged at -118pips.
- USD/CNH is lower post the fixing outcome, last around 7.1650. Focus will be on whether we can test sub 7.1600, with last week's cycle lows at 7.1525.
MNI: CHINA PBOC CONDUCTS CNY331.5 BLN VIA 7-DAY REVERSE REPO MON
Jun-30 01:21
- CHINA PBOC CONDUCTS CNY331.5 BLN VIA 7-DAY REVERSE REPO MON
