Westpac on the Reserve Bank of Australia:
- US inflation above 9% and Canada's surprise 100bp hike have stoked another bidding war in rate hike forecasts. RBA pricing is joining the frenzy, as Australia's booming jobs data fuels talk of 50bp becoming 75bp in August.
And AUD:
This should help A$ on crosses. but the grim global mood evident in sliding commodity prices suggests the US dollar remains strong near term.
WPAC AUD/USD view out to 3 months:
