AUD

• US data. Solid US retail sales underpinned sentiment. Upshift in US interest rate expectations & weaker GBP boosted the USD. AUD slipped back.• Macro pulse. Markets toying with the idea the US Fed may hike interest rates. More US/Iran related volatility possible. China data batch due Monday. Global Trends A mixed performance across asset classes overnight, though there was a hint of US outperformance on the back of positive US economic data. US consumer spending (the engine room of the economy) remains resilient in the face of higher gasoline prices with retail sales growing 0.5% in April after a...

• Market wobbles. Faster US inflation dampened the mood. US equities dipped, bond yields rose. USD firmer. AUD drifted back but still at elevated levels.• AU Budget. A lot of the big ticket items already known. More spending restraint would have been helpful. RBA still has more work to do in its inflation fight. Global Trends A few renewed wobbles across markets overnight. There have been no fresh developments related to the US/Iran conflict with hopes of a long-lasting peace deal fading and the Strait of Hormuz still effectively shut. Added to that, the economic aftermath of what has taken...

• Optimistic markets. Equities rose, oil dipped on positive US/Iran vibes. More volatility likely. USD softens. AUD whipped around by push/pull forces.• RBA hike. RBA announced its 3rd straight rate rise. Another hike more likely than not. But it will come at an economic cost. Growth set to slow sharply. Global Trends Sentiment about the situation in the Middle East has generated a few bursts of volatility over recent sessions. Following a deterioration in risk appetite yesterday indications the US/Iran ceasefire is holding eased fears overnight. US officials downplayed Iran’s actions stating that the targeting of warships and attacks on...