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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
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
More View more
Real Time News
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.20% 🇬🇧GBP: 0.20% 🇪🇺EUR: 0.06% 🇳🇿NZD: -0.00% 🇯🇵JPY: -0.05% 🇦🇺AUD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cLSIr0JzHI
  • DAX 30 Index May Fall as Germany Extends Nationwide Partial Lockdown - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/11/30/DAX-30-Index-May-Fall-as-Germany-Extends-Nationwide-Partial-Lockdown.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $DAX #DAX30 #GER30 https://t.co/KlKH99Yya4
  • 🇨🇭 KOF Leading Indicators (NOV) Actual: 103.5 Expected: 101 Previous: 106.6 https://www.dailyfx.com/economic-calendar#2020-11-30
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.48% Germany 30: -0.52% France 40: -0.60% US 500: -0.73% Wall Street: -0.87% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/1BDhkhOZcT
  • Gold - 50% Fib retracement holds at first attempt.. the chart still looks messy. #gold #xau #xauusd @DailyFXTeam https://t.co/fpIidCLWLr
  • Heads Up:🇨🇭 KOF Leading Indicators (NOV) due at 08:00 GMT (15min) Expected: 101 Previous: 106.6 https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:💶 Eurogroup Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-30
  • 🇨🇭 Retail Sales YoY (OCT) Actual: 3.1% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:🇨🇭 Retail Sales YoY (OCT) due at 07:30 GMT (15min) Previous: 0.3% https://www.dailyfx.com/economic-calendar#2020-11-30
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/MLaA3Tgqlb
Australian Dollar Gets Short-Lived PPI Boost

Australian Dollar Gets Short-Lived PPI Boost

2017-01-27 01:18:00
David Cottle, Analyst
Share:

Talking Points

  • The Australian Dollar gained on slightly stronger Producer Price Index data
  • But markets already knew that consumer prices for the same period had underwhelmed
  • Sure enough, the Aussie’s gain was curtailed

The Australian Dollar got a modest bounce Friday on news that local factory-gate prices rose a bit more than expected as 2016 wrapped up.

The Producer Price Index was up 0.5% in the fourth quarter compared to the third, according to official figures. That was above the 0.3% which markets had been looking for. The index rose 0.7% on-year, once more beating forecasts which averaged out at a 0.5% gain.

AUD/USD leaped up to 0.75362 in short order after the data, but has already started to slip back again. The PPI data’s thunder had already been stolen at least to some extent by the release of consumer price numbers for the same period earlier this week. These missed expectations.

Consumer prices are much more closely linked to likely central bank policy action than the PPI, via direct mandate. That means the latest PPI data probably won’t alter the view that, while record-low Australian interest rates may fall no more, they are unlikely to rise much anytime soon either.

With US rates expected to rise further – and possibly much further – in 2017, the interest-rate attractions at least are all on the “USD” side of AUD/USD for now.

The current general backdrop as the week bows out is for modest US Dollar strength within pretty tight ranges as investors continue to weigh President Donald Trump’s protectionist leanings with promises of fiscal stimulus. That can clearly be seen on the chart below:

Up, then back again: AUD/USD

Australian Dollar Gets Short-Lived PPI Boost

Chart Compiled Using TradingView

Have you often wished you knew a bit more about financial-market trading? The DailyFX webinars might be just what you need.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES