![]() ![]() ![]() The reaction in AUD/ USD has been more abrupt. ![]() Now that it has arrived, the market is recalibrating and digesting the intonation of the statement. Prior to the meeting, interest rate markets were pricing in a fifty-fifty chance of a 25 basis point hike later this year. The Citibank Economic Surprise Index (ESI) in the chart below is leaning toward a possible beat for AUD fundamental data coming up. They highlighted the tight labour market and that wages had started to pick up.Īustralian retail sales and trade data will be released this week followed by building approvals figures next week. In the accompanying statement on monetary policy, the bank said, “Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve.” The 25 basis point lift took the cash rate to 3.85%. The Australian Dollar roared over 67 cents after the RBA tightened monetary policy following a pause last month. ![]()
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