Australian CPI data fuels rate cut expectations
City Index April 24, 2013 2:20 PM
<p>The Australian CPI data came in weaker than expected with the RBA’s preferred inflation gauge the ‘trimmed mean CPI’ was reported Q/Q to rise 0.3% […]</p>
The Australian CPI data came in weaker than expected with the RBA’s preferred inflation gauge the ‘trimmed mean CPI’ was reported Q/Q to rise 0.3% versus the 0.5% expected. The data has given the RBA scope to cut rates although I would suggest the May meeting maybe a little early with the RBA being quite vocal that the effects of previous rate cuts are still working their way through the Australian economy.
It seems twitter will need to review their security following hackers taking control of the Associated press twitter account last night and a sending false tweet of two explosions in the White House that briefly sent the US financial markets reeling.
Following yesterdays poor German PMI data the focus this morning will be on the IFO survey with the consensus headline number being 106.2. If this number disappoints the market I fully expect ECB rate cuts to come into play. The UK will release mortgage data later this morning with the US session bringing us the durable goods number.
Supports 1.2970-1.2940-1.2920 | Resistance 1.3030-1.3080-1.3125
Supports 99.15-98.70-98.40 | Resistance 100.00-100.90-101.50
Supports 1.5215-1.5165-1.5055 | Resistance 1.5300-1.5370-1.5425
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