We have updated our privacy policy and terms & conditions. Find out more here.
0
 

Forex - Australian dollar down ahead of CPI

By Investing.comForexJul 22, 2014 11:32PM GMT Add a Comment
 
AA
+
-

Investing.com - The Australian dollar eased in early Asia Wednesday ahead of consumer price data and the HSBC China flash PMI report.

Forex - Australian dollar down ahead of CPIAustralian dollar weaker

Reserve Bank of Australia Deputy Governor Philip Lowe is scheduled to give a speech at the RMB (Chinese renminbi) Internationalization Round Table in Sydney at 1130 (0130 GMT). At the same time, Australia's second quarter CPI is due with expectations for a 0.5% quarter-on-quarter gain with the underlying figure seen up 0.6%.

Overnight, the dollar traded largely higher against most major currencies after investors digested solid U.S. inflation and existing home sales numbers and determined the U.S. economy continues to improve and is in need of less support from the Federal Reserve.

The Labor Department reported earlier that the U.S. consumer price index rose 2.1% in June, unchanged from the previous month and in line with forecasts, which drew applause for the dollar.

On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May, also in line with expectations.

Figures that met but did not exceed Wall Street expectations bolstered the dollar, as a strong upside surprise could have rattled nerves and sent many investors rethinking what the Federal Reserve will do with monetary policy, thus creating uncertainty.

Market talk points to the Fed ending its bond-buying program around October and then raising interest rates some time in 2015, though the length of time that will pass between those two policy moves remains up in the air.

June's core inflation rate, which excludes food and energy costs, rose by just 0.1% from May and 1.9% on year, slightly below market calls for 0.2% and 2.0% readings, respectively, which illustrated how gasoline was driving the CPI up, though markets viewed the numbers as fundamentally healthy anyway.

Elsewhere, the National Association of Realtors reported earlier that existing U.S. home sales rose 2.6% to 5.04 million units in June from 4.91 million in May, beating market forecasts for a 2.0% rise to 4.97 million units.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 80.87.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Forex - EUR/USD weekly outlook: November 24 - 28
By 
Investing.com
 - Nov 23, 2014
Forex - GBP/USD weekly outlook: November 24 - 28
By 
Investing.com
 - Nov 23, 2014
Forex - NZD/USD weekly outlook: November 24 - 28
By 
Investing.com
 - Nov 23, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/USD
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg