Author: Rhys Miles
As referenced yesterday, the AUD was unlikely to move much overnight as we get closer to today’s CPI data. A small continuation of yesterday’s sell off saw a low of 0.7078 early this morning and a subsequent rally back to 0.7100.
Today’s inflation data will be crucial in light of recent comments from the RBA where they have stated the driver of any rate move will be determined by the direction of inflation. An increase of 0.2% over the quarter is expected. This would see annual inflation dip to 1.5%, from 1.8% in Q4.
Overnight, we have the ECB economic bulletin and the Bank of Canada’s interest rate announcement.
Meanwhile, US new home sales fell by more than expected over March. Sales of previously owned homes fell 4.9% in March to a 5.21 million annual rate. However, the fall follows a strong February result. Also, the spring sales season is shaping up well as US mortgage rates fall and home affordability improves.
Equities have enjoyed a stellar run. US stocks recorded an all- time closing high preceded by the All Ords almost 1% rally yesterday. Better than expected earnings reports from Coca- Cola, Twitter, Hasbro and Proctor and Gamble have been the catalyst supported by the diminishing likelihood of further interest rate increases from the Fed.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.