Wednesday 2nd June 2021
The RBA didn’t steer from its earlier stance that it was too soon to be looking at any changes in policy right now. Those who were expecting a more hawkish attitude will have been disappointed. The real surprise yesterday was the strength of the GDP partials in Australia, in particular a record current account surplus. NAB’s Rodrigo Catril says that will translate to a higher GDP number today. Elsewhere, Europe posted final PMIs for May, which have been revised upwards, and the US reported a high ISM manufacturing read. Hardly surprising then, that oil is on the rise, with Brent hitting pre-pandemic levels. But with India still in trouble, Iran ready to up their production, and uncertainty over lockdowns the world over, isn’t $71 oil a little premature?