News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Australian Dollar Gained as Additional Rate Cut Expectations Failed to Materialise

Australian Dollar Gained as Additional Rate Cut Expectations Failed to Materialise

Gary Kerdus,

THE TAKEWAY: Australian consumer prices relatively flat, met expectations > Market expectations for further rate cuts likely lacked catalyst > Australian Dollar gained

The Australian Dollar gained versus the U.S. Dollar as Australian consumer prices increased at 0.5 percent in the second quarter, up from first quarter figures which increased at 0.1 percent. The yearly change in consumer prices for the second quarter increased at a slower rate to 1.2 percent from 1.6 percent. Both quarterly and yearly figures matched closely to projected estimates which factored in a marginal increase for quarter-over-quarter prices and a slight decrease for year-over-year prices.

The Australian Dollar may have rallied because prices roughly fell in line with expectations reinforcing that the fundamental outlook had not materially changed. Markets could have been looking for larger than expected price declines to fuel expectations for rate cuts which typically does not bode well for the high-yielding currency. However, since the worse than expected scenerio did not play out, traders probably decided to reduce short exposure after the Aussie currency was heavily sold over the last three days of trading.

AUD/USD, 5 Minute Chart

Australian_Dollar_Gained_as_Consumer_Prices_Remain_Stagnant_body_Picture_1.png, Australian Dollar Gained as Additional Rate Cut Expectations Failed to Materialise

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

DISCLOSURES