-
Week Ahead: Sentiment Unstable, RBA, FOMC Minutes, Sell AUD/USD
Risk sentiment was broadly stable for most of the week, mainly due to Fed Chair Yellen dampening investors’ central bank rate expectations. With markets now pricing in considerably less than what the Fed projects, considerably weaker incoming data may be required in order to push investors’ Fed monetary policy expectations lower from here. As we do not anticipate such a development, it will largely depend on improving global growth prospects to drive sentiment further. While this week’s business activity data out of China surprised on the upside, it may also lower expectations for more aggressive stimulus ... (full story)