A couple of items from Bloomberg on Australia today

The first is a useful summary of the RBA Minutes

The second is a curious piece on the AUD ... The Australian Dollar's Outlook Darkens

  • Leveraged funds cut net long positions to 12,879 contracts in the week through May 9, the sixth straight reduction and down from as high as 53,601 at the start of March
  • Optimism has evaporated as the prices for iron ore, Australia's biggest export earner, plunged
  • Rising Chinese iron ore stockpiles
  • diminishing yield advantage of Australian bonds over U.S. Treasuries, given expectations for a rate increase by the Federal Reserve in June, is adding to concerns

It also mention wage data due tomorrow


OK, while you're here, separately ... CBA's summary of the Minutes (in brief):

  • No surprises in the minutes
  • CBA expects cash rate on hold through 2017 "and well into" next year
  • Wage growth expected to remain low for some time ... expect data tomorrow to show negative real wage growth
  • RBA has more confidence in their inflation forecast, underlying inflation expected higher to 2% early next year