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Forex Today: Australian CPI in Surprise Rise to 3.6%

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 was expected to drop from 3.5% to 3.4%, but it rose to 3.6%.

  1. Australian Consumer Price Index (CPI) (inflation) data released a few hours ago showed a small though unexpected increase in the annualized rate from 3.5% to 3.6%. The rate was expected to fall to 3.4%. Despite the slightly uptick, the Australian Dollar was basically unchanged.
  2. Global equity markets, especially in Asia, have traded lower since Fed member Kashkari made some hawkish comments towards the end of the day in the USA. Kashkari said that the FOMC had not entirely ruled out the prospect of a rate hike. US Treasury yields rose, and the US Dollar gained a little ground following the comments. The Chinese HSI is down by more than 1.5% today.
  3. The precious metal Silver rose again yesterday to close at a new 10-year high, with the absolutely 10-year high price at $32.50 well within sight. It is notable that spot Silver is outperforming Gold. Long-term trend traders will be interested in Silver on the long side.
  4. In the Forex market, the strongest major currency since the Tokyo open is the US Dollar, while the Norwegian Kronor is the weakest major currency, putting the USD/NOK currency pair in focus.
  5. There will be a release today of German Preliminary CPI data.
  6. Yesterday’s release of US CB Consumer Confidence data was better than expected.

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Adam Lemon
About 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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