Australian Treasurer Jim Chalmers presented Labor’s first budget on Tuesday, with the key forecasts noted below.
Australian govt forecasts CPI at 5.75% in 2022-23.
Govt forecasts CPI to return to RBA band in 2024-25.
Govt Forecasts GDP growth of 3.25% in 2022-2023.
Govt forecasts GDP growth of 1.25% in 2023-2024.
Govt forecasts unemployment at 4.5% in 2023-2024.
AUD/USD broke its consolidative range to the downside on the budget release, now testing 0.6300 once again. The pair is bearing the brunt of risk-off flows seeping back into markets, despite upbeat sentiment data from Germany. Meanwhile, the US dollar is struggling to find demand, exerting additional downside pressure on the aussie.