Daily Digest Market Movers: Australian Dollar weakens ahead of RBA interest rate decision

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  • The stronger than expected Q1 CPI also makes it hard to see the RBA being sufficiently confident that inflation will return to and stay in the band by the time the November meeting comes around," said ANZ head of Australian economics Adam Boyton.
  • Philadelphia Fed President Patrick Harker said on Monday that one interest-rate cut is appropriate for this year if the US economy performed as expected. Harker further stated that he’d like to see “several” evidence of improving inflation, per Bloomberg. 
  • The US NY Empire State Manufacturing Index improved to -6.0 in June from -15.6. in the previous reading, above the consensus of -9.0. The index has remained in contractionary territory since November 2023. 
  • Financial markets have priced in a nearly 62% odds rate cut from the US Fed on September 18, according to the CME’s FedWatch Tool.


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