NZD

• Mixed markets. US equities fell back with higher bond yields & jitters about the autoworkers strike weighing on sentiment. USD & AUD consolidated.• China data. The China activity data was generally better than expected. This supports our thinking that growth momentum could be bottoming out.• Event calendar. US Fed (Thurs morning AEST), BoE (Thurs AEST), & BoJ (Fri AEST) decisions in the spotlight. European/US PMIs (Fri) also in focus. Mixed fortunes across asset classes and regions on Friday. In contrast to the lift by most major Asian and European stock markets, US equities fell back, led by the tech-sector...

• Softer US data. US consumer confidence & the JOLTS report came in weaker than expected. This weighed on US bond yields & the USD.• US focus. US labour market trends will remain in the spotlight with ADP employment, jobless claims, & non-farm payrolls due over coming days.• AU inflation. Monthly CPI indicator released today. It is an incomplete series, particularly so early in the quarter. The data may generate intra-day AUD volatility. Downside surprises in the US economic data released overnight has generated a meaningful market reaction with equities higher (S&P500 +1.5%), bond yields lower (US 2yr yield -11bps,...

• Equities higher. Yesterday’s lift in Asian equities flowed through to other markets. The S&P500 rose, while US bond yields eased & the USD consolidated.• AU retail. Australian retail sales exceeded expectations, with spending related to the women’s World Cup supportive. AUD a bit firmer.• US data in focus. There is a string of US labour market releases over the next few days. Will the US’ relative economic strength continue? At the start of a week jam-packed with important economic data, particularly in the US, equities have risen over the past 24hrs while US bond yields have eased, and the...