I predicted many times publicly on this forum that the Fed would raise 4 times this year. Instead, it's looking like 3 times (with 2 already done) plus a September balance sheet adjustment which will almost be equivalent to another hike.
The RBA is in dream land if they think they're going to fight off this strong AUD by keeping rates low. As the USA keeps raising rates, the US Dollar will continue to weaken pushing up the Aussie $ on a relative basis.
At this point I think a recession is the only thing that'll bring the A$ down. The RBA must act responsibly and raise rates, or at least loosen regulations on banks and allow them to raise even further independently. We can't risk the health of the banking sector because the RBA suddenly has a moral compass that was absent while this credit bubble inflated.
