It is likely that the U-S Federal Reserve will hike interest rates again next month. However, the central bankers also note the trade, housing and emerging markets as downside risk. They also expect GDP growth to slow in second half of the year but remain above potential.
The Australian dollar was under much pressure today amid growing political uncertainty. This was after several senior ministers resigned from their posts putting Prime Minister Malcom Turnbull’s leadership in deep jeopardy.
The Aussie lost some ground despite strong second quarter construction data.