Little Changed

Tight ranges prevailed in overnight dealing, with a lack of hawkish impulse in the minutes covering the latest U.S. Federal Reserve meeting and the continued topsy-turvy headline flow surrounding the Russia-Ukraine situation at the fore.

• Late on Wednesday RBA Deputy Governor Debelle reiterated that the evolution of the economy will determine cash rate settings, while underlining the idea that it is possible, but not inevitable, that rates will rise in ’22.
• YM and XM print at essentially unchanged levels after the early overnight downtick was unwound.
• Labour market data headlines the domestic docket today, coming in the wake of the RBA expressing its willingness to run the economy hot, in an attempt to drive unemployment lower and foster the sort of wage growth that would promote a sustainable underlying inflationary impulse consistent with levels in the upper half of the Bank’s 2-3% target band.