Aussie Data Sends Currency Lower
Disappointing inflation figures from the Reserve Bank of Australia and the Australian Bureau of Statistics sent the Aussie Dollar lower against its US counterpart, with FX traders now anticipating a rate cut from the Reserve Bank of Australia. The Statistics Bureau reported that the Consumer Price Index fell to 0.0% (quarter-over-quarter) for the first quarter of the year, below the decline to 0.2% (from 0.5%) that had been predicted. While analysts say that the fall in the AUD/USD was simply a knee-jerk reaction to the news, they also suggest that the trend is likely to be weaker as a result, until such time as the RBA confirms or refutes their thinking regarding interest rates.
As reported at 10:54 am (GMT) in London, the AUD/USD was trading at $0.7043, down 0.8042%; the pair is moving off the session trough of $0.70275 while the high was recorded at $0.71013. The EUR/AUD was higher at A$1.5922, a gain of 0.7364%; the pair has ranged from A$1.58090 to A$1.59591 in today's trading session.
Germany IFO Surveys Miss Mark
In the Eurozone, the latest IFO surveys for Germany missed analysts' predictions. The Current Assessment came in with a reading of 95.2 for April, while Business Climate was at 99.2 and expectations missing the forecast with a reading of 95.2. All three surveys fell from the prior survey figures, and all failed to meet analysts' expectations of 103.6, 99.9 and 96.1, respectively. With Germany as the historical driver of the Eurozone's overall economy, the news sent the common currency lower, with the EUR/USD down 0.0686% and trading at $1.1215; the pair has ranged from $1.11949 to $1.12248 in today's session.