US Inflation Boosts Case Fo No Further Hikes

AUD

The Aussie Dollar opens mixed across the board this morning after a volatile overnight session. Asian equities held strong, closing the session in the green with the ASX+0.3%, Shanghai Comp +0.3% and NIKKEI +0.8%. Commodities saw a mixed performance with Crude Oil -1.8%, Natural Gas -6.8%, Gold -0.1%, Silver +0.2%, Iron Ore +0.7% and Copper -0.7%. Not much in the way of local data with only MI Inflation Expectations which came in slightly worse than the previous reading of 5.2% at 4.9% with little effects on the AUD. Nothing in the way of data, however we will witness RBA Governor Lowe face his final sitting before the Standing Committee on Economics in Canberra before his term expires.

USD

A jagged night for the AUDUSD pair saw over a cent in movement, poking its head above the 0.6600 handle before retracing to open this morning lower at 0.6517. Wall Street was mixed on the close with the Dow Jones +0.2%, S&P 500 flat and NASDAQ +0.1%. US CPI for July printed at 0.2% m/m as expected with the y/y result at 3.2%, lower than expectations of 3.3%. Core measures matched expectations at 0.2% m/m and 4.7% y/y. Also released, Jobless Claims data was mixed with initial claims rising to 248k against expectations of 230k. The USD was sold in the immediate aftermath of the data with the AUDUSD pair rising to highs of 0.6617. The moves were relatively brief with the rate quickly returning to pre-data levels. Out of the US tonight we will see FOMC Member Harker Speak followed by some fairly important data in the form of Core PPI m/m, PPI m/m, Prelim UoM Consumer Sentiment and Prelim UoM Inflation Expectations.

EUR

The AUDEUR also saw some volatility as a flow on result of last night’s US data, seeing highs of 0.5984 before also retracing to open lower this morning at 0.5933. European equities closed higher with the DAX +0.9% and CAC +1.5%. A slow day for European data with no release of note yesterday. The trend continues today with only the release of the French Final CPI m/m and Italian Trade Balance.

GBP

A lack of noteworthy data overnight sees the AUDGBP open flat this morning at 0.5142. British equities closed higher with the FTSE +0.4%. A fair bit of data out later today with the standouts being GDP m/m and Prelim GDP q/q. For the quarterly measure, expectations indicate a drop from 0.1% to 0.0%.

NZD

The AUDNZD pair has reclaimed the 1.08 handle after gaining over half a cent during the course of yesterday’s session to open this morning at 1.0830. This morning we saw the release of BusinessNZ Manufacturing Index and FPI m/m which both came in slightly under pervious readings. No market reaction.