A Rather Unremarkable Sentiment
The sentiment is rather quiet. The greenback is now resounding bid. Australian Dollar is in consolidation after RBA release its policy statement. The official cash rate remained at 1.50%. WTI crude oil remained near 70 handle. Gold declined under 1200 and consolidation resumes.
The Australian Central Bank projects growth to be over 3% this year and the next year. Terms of trade are expected to drop but remain at solid position. Aussie has “depreciated against the US dollar along with most other currencies.” Labor market outlook is positive. Unemployment should reduce to around 5%. Wage growth should gradually improve. Inflation is expected to slow to 1.75% in the third quarter but then in 2019 and 2020 it’s projected to rise.