• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Australian Dollar Faces Potential Local CPI And US GDP Miss

By Kurt Osterberg · On April 22, 2018

Australian Dollar Faces Potential Local CPI and US GDP Miss

AUSTRALIAN DOLLAR FUNDAMENTAL FORECAST: NEUTRAL

Talking Points:

  • Australian Dollar paid more attention to sentiment last week than relevant economic data
  • Local CPI and US GDP could disappoint, taking the currency one way and then another
  • This opens the door for risk trends to take the spotlight for the Australian Dollar yet again
  • The Australian Dollar was on its way to finish another week higher against its US counterpart. It did show some temporary weakness on softer Chinese industrial production figures and a rather disappointing local jobs report. However, it recovered in both instances in the aftermath. It wasn’t until closer towards the end of the week when things went south.

    A pickup in hawkish Fed rate hike expectations
    , which were fueled by comments from Lael Brainard, boosted the US Dollar and the 10-year government bond yield rose to a 2-month high. The appeal of these assets relatively speaking hurt stocks as the S&P 500 declined about 0.6%. The sentiment-linked Aussie Dollar fell to its lowest point against its US cousin since April 10th.

    Perhaps this speaks to what the currency is more interested in, and brings us to what next week has to offer. The Reserve Bank of Australia is at the moment in no rush to adjust monetary policy. In fact, RBA’s minutes from their April rate decision reiterated this. Taking that into consideration, this may have been why there was a lack of follow-through from the Australian Dollar to last week’s Chinese and local economic statistics.

    But there is one kind of data that may have a more pronounced effect on the Aussie. On Tuesday, we will get Australia’s first quarter inflation report. There, the headline rate is expected to rise to +2.0% y/y from 1.9% in the fourth quarter. Such an outcome would mean price growth in the lower boundaries of the RBA’s 2 – 3 percent target. Data out of the country has been crossing the wires below economists’ expectations as of late. If a similar situation reduces the urgency for the RBA to consider hiking, then the Aussie Dollar could fall.

    Print Friendly, PDF & Email

    Share Tweet

    Kurt Osterberg

    You Might Also Like

    • Finance

      Lack of Attention to This “Big Rock” in Your Business is Costing You

    • Finance

      SDGs in 2021: Where Do We Go From Here?

    • Finance

      How Microlearning Can be Used to Improve Employee Training Retention

    No Comments

    Leave a reply Cancel reply

    Top Finance

    • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce
    • Hedge Funds In The US Hedge Funds In The US
    • One Ring To Rule Them All One Ring To Rule Them All
    • Kanban vs Scrum: Understanding the Tools for Agile Success Kanban vs Scrum: Understanding the Tools for Agile Success
    • Samsung Galaxy Note 9 Review Samsung Galaxy Note 9 Review

    New Posts

    • Lack of Attention to This “Big Rock” in Your Business is Costing You

      Lack of Attention to This “Big Rock” in Your Business is Costing You

      February 25, 2021
    • SDGs in 2021: Where Do We Go From Here?

      SDGs in 2021: Where Do We Go From Here?

      February 25, 2021
    • How Microlearning Can be Used to Improve Employee Training Retention

      How Microlearning Can be Used to Improve Employee Training Retention

      February 25, 2021
    • Leaders: A Roadmap For Behavior Change

      Leaders: A Roadmap For Behavior Change

      February 25, 2021
    • 7 Modern Strategies to Make Remote Teams Work in 2021

      7 Modern Strategies to Make Remote Teams Work in 2021

      February 25, 2021
    • About
    • Contact Us
    • Privacy & Policy
    • Sitemap
    • Terms of use

    Copyright © 2018-2021 NJCEE. All Rights Reserved.