Forex Today: Australian Inflation Falls to 6.8%

Australian CPI data released hours ago shows a faster-than-expected drop in inflation, with the annualized rate now standing at 6.8% when 7.2% was expected.

  1. Australian CPI (inflation) data shows a fall in the annualized rate from 7.4% to 6.8%, which is a meaningful drop, and better than the expected figure of 7.2%. The Australian Dollar weakened slightly following the release, as this may slightly soften the projected need for rate hikes by the RBA.
  2. Asian stock markets have had a good day, with the Japanese Nikkei 225 Index up by more than 1% while the Chinese HSI is up by more than 2% on news of Alibaba’s revamp. Stocks in the USA yesterday were mixed.
  3. In the Forex market, the US Dollar is rising over the short term after declining for the past two days in line with its long-term bearish trend. Over the short term, the US Dollar looks like the strongest major currency, while the Japanese Yen is the weakest.
  4. Several commodities are performing strongly, notably WTI Crude Oil, while the Sugar ETF CANE has reached a multi-year high price.
  5. President Biden has warned that “the banking crisis is not over yet”.
  6. Yesterday’s release of US CB Consumer Confidence data showed stronger than expected consumer confidence in the USA.
  7. There are no major data releases scheduled for today.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.