Thursday March 21 will bring the employment report (preview to come) from Australia.
Bloomberg have a piece up discussing the importance of labour market developments to the Reserve Bank of Australia and rate cut expectations.
- Australia’s 3-year bond yields have dropped almost 50 basis points since early December
- within a whisker of the RBA’s 1.5% policy rate
- Short-dated bonds popular as markets have increased expectations the Bank will have to cut interest rates
- Skye Masters, head of interest-rate strategy at National Australia Bank Ltd. “Our bias is the cut will come earlier rather than later” as the central bank’s positive outlook for the labor market is unlikely to be fulfilled
Not everyone agrees cuts are coming (we’ve been noting the divergence in views here at ForexLive), a big fiscal boost at the upcoming budget (April 2) could diminish expectations.
AUD is little net changed on the session: