Aussie Higher After Australia Consumer Inflation Data
30 January 2019 - 01:50PM
RTTF2
The Australian dollar strengthened against its major
counterparts in the Asian session on Wednesday, following the
release of stronger than expected consumer inflation data from
Australia for the fourth quarter.
Data from the Australian Bureau of Statistics showed that
Australia's consumer prices rose 0.4 percent on quarter in the
fourth quarter of 2018- unchanged from Q3 and in line with
expectations.
On a yearly basis, inflation advanced 1.8 percent - exceeding
expectations for 1.7 percent and down from 1.9 percent in the three
months prior.
Asian stocks were mostly higher as investors await the outcome
of high-level U.S.-China trade talks. China's Vice Premier Liu He
is in Washington this week to meet U.S. officials, including
President Trump.
Investors also focus on the FOMC decision, due at 2 pm ET.
The press conference by Fed Chair Jerome Powell is awaited for
more details about the central bank's ongoing balance sheet unwind
and rate hike cycle.
The aussie advanced to a 6-day high of 0.9543 against the
loonie, from a low of 0.9490 hit at 5:45 pm ET. If the aussie
continues its uptrend, 0.97 is possibly seen as its next resistance
level.
The aussie strengthened to 2-day highs of 0.7201 against the
greenback, 78.71 against the yen and 1.5890 against the euro, from
its previous lows of 0.7150, 78.17 and 1.5991, respectively. The
aussie is seen finding resistance around 0.735 against the
greenback, 80.5 against the yen and 1.56 against the euro.
The aussie firmed to a 6-day high of 1.0525 against the kiwi and
held steady thereafter. The pair was worth 1.0469 at yesterday's
close.
Looking ahead, Eurozone economic sentiment index for January,
U.K. money supply for December and Swiss KOF leading indicator for
January are due in the European session.
At 8:15 am ET, U.S. ADP private payrolls for January is
scheduled for release.
In the New York session, U.S. pending home sales for December
will be out.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the federal funds rate to be kept at 2.50
percent.
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