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Forex Today: Australian Inflation Falls to 7.4%

By 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.

 Australian CPI data comes in much lower than expected but seems to have had little real effect on the Australian Dollar.

   

  1. Australian CPI (inflation) data was released showing annualised inflation has fallen from 8.4% to 7.4%, a much stronger fall than the rate of 8.1% which had been widely expected. The news appeared to have boosted the Australian Dollar a little, which is counterintuitive.
  2. In the Forex market, the US Dollar is the weakest major currency today, while the New Zealand Dollar is currently the strongest. However, these represent short-term movements which are counter the dominant trend. Recent weeks have seen the US Dollar continue to strengthen.
  3. The Chinese stock market has rallied strongly on the best Chinese manufacturing data released in over 10 years, with the Hang Seng Index currently up by well over 3% on the day.
  4. Some commodities are performing quite well, with a few continuing to rise after having recently made significant bullish breakouts, notably Sugar and Cocoa.
  5. The US 2-Year Treasury Yield is continuing to advance steadily and firmly and is trading close to its long-term high at 4.857%.
  6. US Consumer Confidence data released yesterday came in lower than expected, adding to the case that the US economy is beginning to cool down.
  7. Canadian GDP data released yesterday showed a month-on-month decline of 0.1%, a very marginally worse result than the no change which had been expected.
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.

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