Westpac's Callow Sees Short-Term Support for Dollar

The video discusses the Federal Reserve's influence on the dollar's trajectory, market expectations, and the impact on emerging markets and risk assets. It also covers the Australian bond market's response to employment data and potential RBA actions. Additionally, it examines China's oversight of commodity markets and its implications for the Aussie dollar.

What is the expected short-term impact on the dollar according to the discussion?

• Immediate crash

• Significant depreciation

• Further gains

• Stability with no change

How does the Fed's inflation forecast for 2022 and 2023 compare to their previous expectations?

• Unchanged

• Below 1%

• Slightly above 2%

• Significantly lower

What is the potential challenge for emerging markets due to the Fed's recent stance?

• Stronger currency

• Enhanced stability

• Increased vulnerability

• Decreased interest rates

What is the speculation regarding the Reserve Bank of Australia's actions in response to recent data?

• Start tapering

• Cut interest rates

• Increase bond buying

• Maintain current policy

What is the expected impact of China's actions on the Australian dollar?

• Immediate appreciation

• Marginal influence

• No impact

• Significant depreciation

What is the main factor driving the high demand for metals in China?

• Decreased industrial production

• Record high steel production

• Government restrictions

• Low consumer demand

What is the Reserve Bank of Australia's likely approach to quantitative easing?

• Stop QE entirely

• Switch to a weekly purchase plan

• Maintain a fixed program

• Increase QE significantly