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Australian inflation runs hot for April 2023 at 6.8% (estimates of 6.4%). Chinese manufacturing is spluttering out. The RBA may hit a larger rate hike at their next meeting.

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The Reserve Bank of Australia has lifted rates to 2.85% still below the yield expectations of the short end of the Aust bond market at over 3.50%. The Australian dollar sold off on the decision, lifting the oil price to two month high/s.

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Australian Consumer Price Index blows out to 7.30%, AUD and Aust bonds sell off. Reserve Bank of Australia Cash rate is far too low to have any impact on inflation. 5% could be the target. Emergency rate increase's cannot be ruled out.

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The Australian dollar begins to slide to its pandemic 2020 lows. Government and Corporate debt are at all time highs, while household debt declines pointing to recessionary inflation conditions. Oil price in AUD is at $150. Central Banks face a conundrum after over two decades of underwriting everything.

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Central Banks slowly beginning an interest rate cycle, lead by the Federal Reserve. Rate now at 1.00%, low compared to past cycles, amidst the global food and energy inflation crisis. The fear of higher rates and slowing economy may be a force of hand play if oil stays above $100 USD. Central banks have not priced in stagflation.

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Australian Dollar is overbought, China PMI is now in contraction with Shanghai fully locked down re: COVID out of control and low vaccine rates amongst the elderly. U.S rates now overshooting Australia's cash rate.

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