Markets Overview

New Zealand’s headline inflation returned to the middle ofthe central bank’s 1-3 percent target band for the first timein 5 years. The CPI accelerated to 2.2% y/y in the firstquarter, exceeding 2% median forecasts by analysts due toa weather-related surge in fruit and vegetable prices. TheNZD/USD jumped 0.5% to 0.7040 in early Asia trade.

    Today, we can expect a series of U.S economic data thatinclude jobless and continuing claims, Philadelphia Fedbusiness outlook and leading index. Investors will beinterested to find out whether the recent soft patch in U.Seconomy continues.

    Today’s (Thur 20 Apr) key event in Asia will be Bank Indonesiarate decision later this afternoon, which is expected to seethe key reverse repo rate held steady at 4.75%. Taiwan’sMar exports orders are due at 4pm to assess the durabilityof external demand and consensus looking for a slower10.7%y/y gain from 22% in Feb.