Asia turns its focus to US Fed’s policy guidance - ANZ

According to analysts at ANZ, Asian markets will be looking for directional cues from the US Federal Reserve’s meeting outcome next week.

Key Quotes

“ANZ expects a 25bp rate cut to be delivered, and of equal significance will be the assessment, the balance of risks around expectations of the size of the Fed’s interest rate action, the forward guidance, and the balance sheet reduction programme.”

“On balance, we remain of the view that longer term yields in Emerging Asian markets can move lower. Beyond the benign global backdrop, favourable idiosyncratic drivers are also extending support to local markets.”

“Meanwhile, EM Asia FX markets are caught in the cross-currents of accommodative monetary policy among global central banks and ongoing US-China trade tensions. Most immediately, EM Asia FX, with the exception of the THB, will enter the seasonally weaker month of August.”