By: DailyForex.com
In pairs trading, the Dollar is mixed, moving higher against the Yen but coming under pressure against both the Aussie and Kiwi Dollars. China’s National Bureau of Statistics reported CPI for September at 1.9% (year-over-year) versus expectations of 1.6% while CPI on a month-over-month basis came in at 0.7% versus 0.3% expected. Producer Price Inflation or PPI was also unexpectedly upbeat at 0.1% versus -0.3% expected.
As reported at 9:34 am (JST) in Tokyo, the AUD/USD was higher at $0.7594, a gain of 0.34% while the NZD/USD was higher at $0.7125, up 0.39%. The USD/JPY was trading at 103.758 Yen, a gain of 0.03%
Fed Rate Hike Expectations Grow
Later today, FX traders will be looking for further confirmation from officials of the Federal Reserve Bank that another 2016 rate hike is still a possibility. Also on the calendar are US retail sales which could help cement expectations of a rate adjustment provided they meet or exceed analysts’ expectations. The US Dollar Index is set to record gains of about 1% for the trading week though it remains below yesterday’s high of 98.129 .DXY. Earlier this week, the Fed has released the minutes of its September meeting, and though there were several dissenters who voted against a rate hike, investors’ expectations of a December rate increase have grown. The Dollar is also currently benefitting from the widening lead of Democratic nominee Hillary Clinton over Donald Trump, the Republican candidate for US President.