In the Asian session on Monday (June 5), the Australian dollar/dollar fell back from its highs and temporarily reported at 0.6595, a drop of 0.16%. Australia’s independent wage-setting body has previously announced a 5.75 per cent increase in the minimum wage from July 1. The exchange rate last Friday closed up 0.55% at 0.6604. Expectations of a rate hike from the RBA helped lift the Australian dollar.
The latest news from the Commonwealth of Australia:
Currency strategist Peter Dragicevich said the RBA is likely to raise interest rates by 50 basis points in the coming months and could start the process at its policy meeting on Tuesday. Institutional analysis raised the RBA terminal interest rate forecast to 4.35%. Economist Su-Lin Ong said in a research note on Friday that RBC expects the RBA to raise interest rates by 25 basis points each in June and July given recent changes, including today’s minimum wage decision. , raising the terminal interest rate forecast to 4.35% from the current 3.85%.
