Financial Occultist

09:00 New York time (1300GMT) Federal Reserve Bank of Richmond President Thomas Barkin participates in fireside chat before hybrid Federal Reserve/Massachusetts Institute of Technology Conference on Measuring Cyber Risk in the Financial Services Sector
10:00 New York time (1400GMT) Federal Reserve Bank of Cleveland President Loretta Mester speaks on the “U.S. Economy and Federal Reserve Policy” before a Market News International webcast
12:35 New York time (1635GMT) Federal Reserve Vice Chair Lael Brainard speaks on the economic outlook and monetary policy before the Clearing House/Bank Policy Institute Annual Conference
14:00 New York time (1800GMT) Federal Reserve Vice Chair for Supervision Michael Barr speaks on “Making the Financial System Safer and Fairer” before hybrid Brookings Institution event

And. also:

14:00 New York time (1800GMT) Federal Reserve issues the Beige Book of economic condition:

Beige Book is the commonly used name for the Summary of Commentary on Current Economic Conditions by Federal Reserve District

China’s offshore yuan is weakening even after the ‘strong’ CNY fix

07-Sep-22 07:49 am

Analysis

Anirudh Sethi

The 500+ point gap between the estimate and the actual is the largest ever recorded.

The PBOC has been setting the CNY stronger (i.e. lower USD/CNY) than the estimate for 11 days in succession. This is a ‘signal’ from the PBOC that they’d like to slow the rate of decline of the yuan. And, maybe they have, we’ll never know for sure what the counter-factual might have been. Still, the yuan is weak, the USD is rampantly strong.

Offshore yuan has slipped again today (ie higher USD/CNH). It can;t be too long before there is a “7” in front of this:

Australian Q2 GDP +0.9% q/q (vs. expected +1.0%)

07-Sep-22 07:15 am

Anirudh Sethi

GDP y/y +3.6%

expected 3.5%, prior 3.3%
this is ‘real’ GDP, nominal was +4.1% q/q and 12.1% y/y

GDP q/q 0.9%

expected 1.0%, prior 0.8%

—

Chain Price Index, an indicator of inflation is +4.3%

prior + 4.9%

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Q2 is April, May and June. The RBA began its interest rate hiking cycle in May and hiked again in June. Continued rate hikes in July, August and September might have more of an impact (not a positive one) on economic growth in Q3.