Today’s Notable Sentiment Shifts
AUD – The Australian dollar was indecisive on Monday, with investors split on whether Australia’s central bank will hike interest rates by a “usual” quarter point at their June meeting or opt for something more dramatic.
Consensus looks for a quarter point hike to 0.60%, but Nomura notes that “by returning the cash rate to 0.75%, the RBA would be completing an unwind of the emergency rate cuts it delivered in 2020. This would fit with a narrative that the emergency has passed and might be a relatively easy message to convey.”
Consensus looks for a quarter point hike to 0.60%, but Nomura notes that “by returning the cash rate to 0.75%, the RBA would be completing an unwind of the emergency rate cuts it delivered in 2020. This would fit with a narrative that the emergency has passed and might be a relatively easy message to convey.”