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20 May 2013
Flash: Asia-Pacific / EM’s macros– TD Securities
Flash: Asia-Pacific / EM’s macros– TD Securities
For Asia-Pac, TD Securities say that the market waits for the RBA May minutes following their surprise rate cut (Tue) as well as China’s flash HSBC PMI for May (Thur).
And in Emerging Markets, their research team says it is generally quiet this week, with the SARB decision on Friday the highlight. But in spite of weak macro data, the 6.5% rally in USDZAR in May and demands for 15-60% wage increases by makes a rate cut highly unlikely. So while markets have priced out some easing risks, TD Securities say’s there is still 11bps priced in for a meeting in which the central bank’s hands are likely tied.
For Asia-Pac, TD Securities say that the market waits for the RBA May minutes following their surprise rate cut (Tue) as well as China’s flash HSBC PMI for May (Thur).
And in Emerging Markets, their research team says it is generally quiet this week, with the SARB decision on Friday the highlight. But in spite of weak macro data, the 6.5% rally in USDZAR in May and demands for 15-60% wage increases by makes a rate cut highly unlikely. So while markets have priced out some easing risks, TD Securities say’s there is still 11bps priced in for a meeting in which the central bank’s hands are likely tied.