The Reserve Bank of Australia reduced interest rates a quarter point (the market was divided on whether it would act), ignoring robust, even buoyant, housing data and concentrating on consumer prices. We see Australian inflation bucking international trends and coming in weaker in the coming quarters.
Bank of Japan governor Kuroda has signalled his opposition to yen strength (not actively seeking yen weakness). This reflects the delicate balance the BoJ has to operate – Japanese consumer inflation expectations are amongst the highest in developed economies, but income expectations are weak.
Williams and Mester of the US Federal Reserve are both scheduled to speak. With the Fed as divided as it appears to be individual opinions are important. On the other hand we have heard quite a lot from Williams of late, so his capacity to surprise markets may be limited.
Minor manufacturing sentiment data is due – the Caixin PMI from China was basically in line. The UK manufacturing PMI and the New York PMI are both on the calendar.