Daily Market Briefing, Asia Pacific

• US jobs. Weaker than forecast US jobs report. US Fed rate cut expectations increase. Lower US bond yields weigh on USD. AUD & NZD firmer.• Fed policy. Step down in employment points to a series of rate cuts by US Fed. Markets toying with the idea of a 50bp move later this month.• Key Events. In the US, revisions to non-farm payrolls in focus this week, as are producer prices & CPI inflation. ECB also meets. No change expected. Global Trends The state of the US jobs market was in the spotlight on Friday and the data (once again)...

• Positive tone. Improved risk sentiment overnight with equities rising, bond yields falling, & the USD weaker. AUD/USD rebounded.• US data. US job openings weaker than expected. Cracks in the US jobs market are widening. US Fed looks set to lower rates over the next few meetings.• AU GDP. Growth stronger than forecast. Private sector activity picked up. RBA Gov. Bullock indicated if this continues “may not” need as many rate cuts. Global Trends A bit of a reversal of fortunes overnight with the previous sessions modest bout of risk aversion unwinding. European and US equities rose with the tech-focused...

• Debt jitters. Concerns about UK debt pushed up yields & weighed on GBP. Shaky risk sentiment supported the USD. AUD lost some ground.• AU growth. Q2 GDP released today. A few push-pull forces at work. Growth expected to have picked up. RBA set to continue to lower rates slowly.• Macro events. BoE members speak tonight, as does RBA Gov. Bullock & Fed voter Musalem. US JOLTS job openings data also released. Global Trends A few jitters across markets overnight with worries about the UK’s fiscal sustainability at the front of investors’ minds. Pressure is on UK PM Starmer and...

• Quiet markets. US holiday overnight. European equities ticked up. USD a bit softer. AUD near the top of its multi-week range.• Economic trends. US macro headwinds continue to build. Markets are pricing in a stream of US Fed interest rate cuts from the mid-September meeting.• Event Radar. AU GDP due Wednesday. US ISM survey out tonight. Later in the week focus will be on the monthly US jobs report (Fri night AEST). Global Trends A quiet start to the new week in markets. No surprise given the US was closed for ‘Labor Day’. There was no reaction to the...

• Consolidation. Modest moves across markets. US bond yields fell again. AUD ticked higher. AUD also strengthened a bit on most of the major crosses.• AU CPI. Inflation re-accelerated with base-effects related to electricity subsidies a factor. We expect the RBA to continue to ease policy slowly.• Data flow. Fed Governor Waller speaks tomorrow. US PCE deflator due Friday night. Next week AU GDP & US non-farm payrolls are on the schedule. Global Trends Fairly modest moves across markets overnight with little new information coming through to shift the dial. US equities ticked higher (S&P500 +0.2%), though stocks have lost...