G20 comments add volatility ahead of UK inflation report
City Index February 13, 2013 2:01 PM
<p>AUD was the standout performer in the Asian session following a robust consumer confidence reading. The Westpac consumer sentiment rose to 7.7% from the previous […]</p>
AUD was the standout performer in the Asian session following a robust consumer confidence reading. The Westpac consumer sentiment rose to 7.7% from the previous reading of 0.6%, with the components showing confidence in the housing market following the previous RBA rate cut and optimism from the global growth picture. The lifestyle currency is up 50 points from the New York close.
The UK inflation report at 10.30am this morning is likely to be the highlight of today. The old lady is likely to set a balanced tone following incoming Governor Carney’s comments last week highlighting a policy dilemma of weak growth and above target inflation whilst keeping further stimulus measures on the table. The subsequent press conference is likely to determine the near term direction for sterling.
The upcoming G20 and ‘currency wars’ comments are causing day traders a lot of pain with conflicting comments. The G7 statement yesterday called for “fiscal and monetary policies that will not target exchange rates”, with following comments from unnamed officials somewhat disputing this as “the G7′s statement signalled concern about excess moves in the JPY” and “Japan will be in the spotlight at the G20 in Moscow this weekend.”
Data from across the pond this afternoon consist of retail sales, MBA new mortgage applications and business inventories.
Supports 1.3430-1.3405-1.3350 | Resistance 1.3475-1.3500-1.3525
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Supports 1.5630-1.5550-1.5485 | Resistance 1.5715-1.5760-1.5830
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