Transient remark through CBA from a word final week.
- The Aussie greenback is anticipated to rise over 2022 to succeed in US78-80 cents by the December quarter on the expectation that the Reserve Financial institution begins to ‘normalise’ rates of interest.
CBA additionally give a heads as much as a ‘key uncertainty’ in Australia subsequent yr:
- A key uncertainty could possibly be the end result of the Federal election due in Could. Whereas the opposition Labor Get together is at present effectively forward in most opinion polls, a decent outcome or perhaps a ‘hung’ parliament may probably impression investor sentiment. However a centre-left authorities, as evidenced within the US, may see a giant increase to authorities spending.
A giant increase in fiscal help for the Australian economic system, to the extent it’d speed up progress on RBA targets on inflation and unemployment may, in flip, speed up RBA coverage normalisation and thus present additional tailwind help for the AUD.