Australian CPI data fuels rate cut expectations

<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.

 


EUR/USD

Supports 1.2970-1.2940-1.2920 | Resistance 1.3030-1.3080-1.3125


USD/JPY

Supports 99.15-98.70-98.40 | Resistance 100.00-100.90-101.50


GBP/USD

Supports 1.5215-1.5165-1.5055 | Resistance 1.5300-1.5370-1.5425

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.