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Writer's pictureRosbel Durán

🏦📊AUD Premium Over USD At Around +60Bps: Cable FX Macro

**As seen in Interest Rate Probability Dashboard, subscribe at cablefxm.co.uk/reports


  • Our interest rate probability dashboard is showing markets pricing 53bps of rate cuts from the Fed by September, this would leave the benchmark policy rate at around 4.8%

  • Other developed market central banks are seen easing policy, however, the Fed is expected to be among the most aggressive in cutting interest rates next year

  • The degree to which swap traders price in the Fed has analysts warning against a possible disappointment as high inflation and resilient growth could delay Fed's easing

  • Diverging from the Fed, the RBA is seen delivering additional tightening next year, the AUD premium now stands at around 60bps to the dollar


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