Westpac IQ

Monday re-issue edition: analysis and forecasts for this week's key releases.

Friday edition: analysis and forecasts for this week's key releases.

Topline data, on their own, can mislead. It pays to look below the surface to see the underlying trend.

The latest edition of Sustainability Impact unpacks what the Federal Budget delivered for sustainability, from energy investments to environmental protections. We also explore new carbon crediting methods under the Australian Carbon Credit Units, the latest data insights for the Safeguard Mechanism, a Series A raise for an innovative battery recycling company, and more.

Australian businesses are currently navigating a more challenging operating environment, but the decade ahead presents significant growth opportunities, according to a new Westpac report.​

From tax reforms to spending cuts, this year’s Federal Budget signalled some controversial new directions. Here Westpac Institutional Bank analysts consider its likely impacts, sector by sector.

The Australian dollar re-tested support down at 0.7100 last week, but news of a 60-day ceasefire extension kept risk appetite afloat. The US and Iran exchanged words on a draft agreement which would extend the ceasefire and open the Strait, however nothing is set in concrete just yet with Israel expanding its fire on Lebanon. At the same time, the Australian dollar’s bullish credentials have taken a hit. The week ahead is headlined by local Q1 GDP (Wed) and US May payrolls (Fri).

The Australian dollar was threatening a sustained break below 0.7100 last week but US-Iran deal optimism kept risk appetite afloat. US officials are touting progress again to start the week, which is helping the Australian dollar trade higher, up to 0.7170. At the same time, the Australian dollar’s bullish credentials have taken a hit. A weak April labour force and a hawkish repricing in Fed expectations have compressed the Australian dollar’s yield supports. This week's monthly April CPI (Wed) should re-centre attention back on the RBA's inflation priorities. Q1 construction work done (Wed) and CAPEX (Thu), alongside April household spending (Thu) will provide a temperature check on the economy’s momentum into and around the energy price shock.

The Australian dollar was coasting above 0.7200+ for much of last week but a bruising end to that week and a soft start Monday have seen it give back the best part of US1.4c from last week’s highs, to 0.7130. The global bond sell‑off is now clearly bleeding into risk assets, and the Australian dollar heads into a busy week with plenty to digest - US‑Iran headlines, the FOMC minutes, and flash May PMIs. Locally, focus falls on May consumer sentiment and the RBA minutes on Tuesday, followed by April labour force data on Thursday.