We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
Gold
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.72%, while traders in USD/CAD are at opposite extremes with 70.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9ytjuGRTBC
  • Recession risk is back on the rise and largely attributable to expected economic impact from the #coronavirus outbreak. Get your market update from @RichDvorakFX here:https://t.co/NhzJHEqwj6 https://t.co/0XVIiOWjID
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.01% 🇳🇿NZD: -0.04% 🇨🇭CHF: -0.09% 🇦🇺AUD: -0.12% 🇬🇧GBP: -0.12% 🇯🇵JPY: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GtO4ITHwT0
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: US 500: 0.71% Wall Street: 0.67% France 40: -0.18% Germany 30: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/4ZVogLkGM6
  • My trading video for today: 'S&P 500 and #Dow Suffer Sharpest Tumble Since August 2015, Closer to Self-Sustaining Risk Off' https://www.dailyfx.com/forex/video/daily_news_report/2020/02/26/SP-500-and-Dow-Suffer-Sharpest-Tumble-Since-August-2015-Closer-to-Self-Sustaining-Risk-Off-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/tMmopEmE64
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/oQs8Ty4Eau
  • The Japanese #Yen may rise as the #SP500 outlook risks shifting more bearish on signals in trader positioning. What is the road ahead for $USDJPY given the outbreak of the #coronavirus? - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/02/26/Yen-Outlook-Bullish-USDJPY-May-Fall-as-SP-500-Sees-Dip-Buying.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ynFwtuzd6P
  • That's more or less a 268% increase after the government announced expansionary measures such as giving HK$10k to each adult permanent resident... https://t.co/kIM4QNkHuw
  • Hong Kong 2019/20 fiscal deficit at HK$37.9b, 2020/21 deficit at a record HK$139.1b -BBG
  • If you missed this week's session on IG Client Sentiment where I discussed the Japanese Yen and #SP500 outlook, check out the recording on YouTube here $USDJPY $AUDJPY #SPX - https://t.co/6VYWaVuJgZ
Australian Dollar Plunges on Softer CPI Data

Australian Dollar Plunges on Softer CPI Data

2011-10-26 01:06:00
Lujia Lin,
Share:

THE TAKEAWAY: CPI data shows slowing price increases > Data implies greater scope for rate cuts, monetary easing > AUD falls

The Australian Dollar fell sharply after the release of CPI data showing reduced inflationary pressures. As of 00:55 GMT, the Aussie was down nearly 70 pips versus the USD at 1.0366.

Australian_Dollar_Plunges_on_Soft_CPI_Data_body_Picture_5.png, Australian Dollar Plunges on Softer CPI Data

Chart generated using Strategy Trader

The Australian Bureau of Statistics reported that CPI in the third quarter rose 3.5 percent YoY (vs. 3.6 percent in Q2) and 0.6 percent QoQ (vs. 0.9 percent in Q2), in line with expectations. At the same time, a measure of core inflation using the RBA’s trimmed-mean methodology slowed to 2.3 percent YoY from 2.6 percent in Q2. These figures point to a slowdown in inflation, and suggest that quarter-over-quarter price rises continue to slow after reaching a high of 1.6 percent in Q1 2011. Inflation could slow further as the effects on food prices of the Queensland floods earlier this year fade.

Wednesday’s inflation figures reinforced expectations that the RBA will cut the developed world’s highest interest rate at its next meeting on November 1. According to Credit Suisse data on overnight-index swaps, market expectations for a rate cut surged following the data release, with the swaps now predicting certainty of at least a 25 bp point cut next Tuesday. Over the next 12 months, swaps now expect 121 bps of rate cuts.

Coming on the heels of PPI data showing a similar slowdown in price increases, the CPI figures suggest reduced inflationary pressures and more scope for monetary easing. However, with mining investment in Australia remaining strong, falling unemployment, and a recovering construction industry, it remains to be seen how accommodating a stance the RBA is willing to adopt. Markets will be closely examining next week’s RBA statement for signals on the direction of monetary policy; a dovish tone can be expected to send AUD even lower against its US counterpart. In the meantime, risk sentiment – guided foremost by the outcome of the EU summit on Wednesday – will impact the Aussie in the coming days.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.