– The Government released the 2013/14 Federal Budget last Tuesday. It projected the underlying Budget deficit for 2013/14 at $18.0bn (1.1 % of GDP), a significant deterioration from the small $2.2bn surplus projected in October 2012.
– The key local event next week will be the RBA Board minutes. Market analysts will eyeball the minutes for some further enlightenment about why the RBA chose to alter policy again in May, and hints about the future course of policy.
– Another key local event this week will be the May consumer sentiment index which will reveal the consumer mood after the Budget, May RBA rate cut, and April’s strong 50k jobs growth, and tick down in the unemployment rate to 5½%.
– In the US, Fed Chief Bernanke provides testimony on the US economic outlook and the Fed releases the latest FOMC minutes. This could be quite important for the AUD. In the UK the Bank of England releases its MPC minutes.
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Commonwealth Bank