Australian Dollar Strengthens Modestly on Surprising Inflation Data
| Action Insight Daily Report 5-29-24 |
Australian Dollar Strengthens Modestly on Surprising Inflation Data |
Australian Dollar is having a modest bounce today after stronger-than-anticipated inflation figures. The data also revealed re-acceleration of inflation for the second consecutive month, with core inflation measures also rising. While most economists still view a further rate hike by RBA as unlikely, today's surprising data suggests that such a move can no longer be completely ruled out. The prospect of a near-term rate cut has now significantly diminished. Inflation could remain at elevated levels longer than previously expected, with stubbornly high service inflation and a reversal in goods disinflation trends. Despite the positive move in Aussie, its rally has been limited by a rebounding Dollar driven by mild risk aversion in the markets... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6635; (P) 0.6657; (R1) 0.6672; More... Intraday bias in AUD/USD remains neutral as range trading continues below 0.6713. Further rally is in favor with 0.6578 cluster support (38.2% retracement of 0.6361 to 0.6713 at 0.6579) intact. On the upside, firm break of 0.6713 will resume whole rise from 0.6361 to 0.6870 resistance next. However, sustained break of 0.6578 will dampen this bullish view, and bring deeper fall to 61.8% retracement at 0.6495. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | AUD | Westpac Leading Index M/M Apr | 0.00% | -0.10% | | 01:00 | NZD | ANZ Business Confidence May | 11.2 | 14.9 | | 01:30 | AUD | Construction Work Done Q1 | -2.90% | 0.50% | 0.70% | 1.80% | | 01:30 | AUD | Monthly CPI Y/Y Apr | 3.60% | 3.40% | 3.50% | | 05:00 | JPY | Consumer Confidence May | 36.2 | 38.9 | 38.3 | | 06:00 | EUR | Germany GfK Consumer Confidence Jun | -22.5 | -24.2 | | 08:00 | CHF | UBS Economic Expectations May | 17.6 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Apr | 1.50% | 0.90% | | 12:00 | EUR | Germany CPI M/M May P | 0.20% | 0.50% | | 12:00 | EUR | Germany CPI Y/Y May P | 2.20% | | 18:00 | USD | Fed's Beige Book |
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