- Prices for RBA pauses jump higher
- Today, the US releases its GDP and unemployment claims
- The odds of a Fed hike are increased by the banking turmoil
The Australian dollar has recovered from a 100-point slide and is now at a six-week low. The Aussie is at 0.6621 up 0.28% today. The US releases the GDP and unemployment claim data.
Australian inflation supports RBA’s pause
Reserve Bank of Australia policymakers were delighted by the drop in inflation during the first quarter. The RBA’s rate tightening cycle may have come to an end after 10 consecutive rate increases, according to expectations. The headline rate of inflation dropped from 7.8% to 7,0% in Q1, but more importantly the core rate also fell from 6.9% down to 6.0%. This is its lowest level since Dec 2021. The market price for a second consecutive stop at the May 2, 2019nd According to ASX RBA rate tracker, the meeting increased from 84% before the release of inflation to 100%.
Some voices, however, are predicting a final rate of 3,85%. This would mean a 25-basis-point hike. Some people argue that the inflation rate is higher than the target of 2-3% and the labour market tightens up. There are also worries about a…