AUD

• Market wobbles. Inflation concerns & rising bond yields dampen sentiment. USD firmer. AUD & NZD underperform. AUD now ~2.2% from recent high.• Data flow. UK CPI inflation out today. FOMC minutes due tomorrow. Australian labour report also out on Thursday. Will holiday timing impact the jobs data? Global Trends After a brief respite there was another bout of ‘risk-off’ sentiment across markets overnight. Concerns about inflation and fiscal positions remain with oil prices elevated (brent crude is up at ~US$111/brl) and no real movement with respect to an end to the Middle East conflict or reopening of the Strait...

• Inflation worries. Higher oil prices & central bank rethink push up bond yields. Equities dipped on Friday. USD firmer. AUD & NZD fall back.• Macro pulse. Concerns about the global economy & inflation remain. China data due today. Monthly Australian jobs report released later this week. Global Trends A few wobbles across cyclical assets at the end of last week with European and US equities losing ground, industrial metals prices falling, and the USD strengthening on Friday. The US S&P500 shed ~1.2%, its largest one-day slide since late-March. Copper (-4.5%) and iron ore (-1.3%) also went backwards. By contrast,...

• 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...