Aussie Propelled by CPI, Has Stock Market Correction Ended?
| Action Insight Daily Report 4-24-24 |
Aussie Propelled by CPI, Has Stock Market Correction Ended? |
Australian Dollar is having a robust, broad-based rally today, boosted by unexpectedly strong CPI data. This inflation report is particularly notable given the unexpected reacceleration in monthly CPI in March, which contributed to the quarterly figure not slowing as much as anticipated. Meanwhile, both services and domestic inflation remain elevated. The set of data is unlikely to alter RBA's "not ruling anything in or out" stance at the upcoming meeting in May. The timing of the first rate cut is now pushed further to the end of the year, and there is even possibility that the next move is a rate hike. Overall in the currency markets, New Zealand Dollar and Sterling also strengthened as the second and third strongest for the day, benefiting from improved risk sentiment this week. This uplift in market mood has sparked questions about whether the correction in global stocks observed this month has run its course, a key point of focus for the coming days... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6455; (P) 0.6473; (R1) 0.6504; More... AUD/USD's strong break of 0.6480 support turned resistance confirms short term bottoming at 0.6361, and intraday bias is back on the upside. Sustained break of 55 D EMA (now at 0.6527) will bring further rally to 0.6643 resistance next. On the downside, though, break of 0.6440 minor support will indicate rejection by 55 D EMA and retain near term bearishness. Retest of 0.6361 low should be seen next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Trade Balance (NZD) Mar | 588M | -505M | -218M | -315M | | 23:50 | JPY | Corporate Service Price Index Y/Y Mar | 2.30% | 2.10% | 2.10% | 2.20% | | 01:30 | AUD | Monthly CPI Y/Y Mar | 3.50% | 3.40% | 3.40% | | 01:30 | AUD | CPI Q/Q Q1 | 1.00% | 0.80% | 0.60% | | 01:30 | AUD | CPI Y/Y Q1 | 3.60% | 3.40% | 4.10% | | 01:30 | AUD | RBA Trimmed Mean CPI Q/Q Q1 | 1.00% | 0.80% | 0.80% | | 01:30 | AUD | RBA Trimmed Mean CPI Y/Y Q1 | 4.00% | 3.80% | 4.20% | | 08:00 | CHF | Credit Suisse Economic Expectations Apr | 11.5 | | 08:00 | EUR | Germany IFO Business Climate Apr | 88.5 | 87.8 | | 08:00 | EUR | Germany IFO Current Assessment Apr | 88.7 | 88.1 | | 08:00 | EUR | Germany IFO Expectations Apr | 88.9 | 87.5 | | 12:30 | USD | Durable Goods Orders Mar | 2.50% | 1.30% | | 12:30 | USD | Durable Goods Orders ex Transportation Mar | 0.30% | 0.50% | | 12:30 | USD | Durable Goods Orders ex Defense Mar | 2.00% | 2.20% | | 12:30 | CAD | Retail Sales M/M Feb | 0.10% | -0.30% | | 12:30 | CAD | Retail Sales ex Autos M/M Feb | 0.00% | 0.50% | | 14:30 | USD | Crude Oil Inventories | 1.7M | 2.7M | | 17:30 | CAD | BoC Summary of Deliberations |
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