Australian dollar down on US inflation data

25 May, 2015

The Australian dollar is trading lower today after GDP numbers out of the US on Friday came in above analysts’ expectations and a bullish tone by US Fed president Janet Yellen.

AT 10.09am (GMT) the Aussie dollar was trading at US78.20c down from a high of US79.20c on Friday.

Consumer prices in the US rose for a third straight month in April while the core consumer price index rose 0.3% marking the biggest jump since January 2013.

The unexpected jump in data has once again put an interest rate hike on the table from the US Federal Reserve, which may now act sooner rather than later,

"The 0.3 per cent month-on-month increase in core consumer prices in April, which pushed the three-month annualized rate of core inflation up to a four-year high of 2.6 per cent, leaves the Fed with less scope to delay raising interest rates," Capital Economics said in a note. 

"Admittedly, the annual core inflation rate remained at 1.8 per cent, but the upward trend in the monthly increases since January is pretty clear now."

Also on Friday, Fed president Janet Yellen noted On Friday that the US central bank is on track to raise rates this year although they would proceed with caution,

“I think it will be appropriate at some point this year to take the initial step to raise the federal-funds rate target and begin the process of normalizing monetary policy,” Ms Yellen said in a speech.


Source link  
Great opportunity in the pound

The British pound is under pressure today as a British Prime Minister Theresa may attempts to strike a deal with the DUP...

Gold ready to rally again

The gold price is moving higher again today for the second day in a row as doubts linger on the Future of rate hikes...

Pound slumps on interest rate talk

The pound slumped to its lowest level today post-election, following on from yesterday’s losses after comments...


Euro has reached a top

The Euro has continued to tumble today, still reeling from yesterday’s bullish Fed speech and some believe that further losses are on the cards...

Its a good day for gold

The gold price has surged higher in late European trading today, travelling in the opposite direction of the US dollar as a round...

Gold could surge higher

The gold price is taking a breather today after making a run for the $1,300 level on the back of US dollar strength as traders...


Opec cuts won't work

The oil price racked up its fourth straight day of gains today after Saudi Arabia and Russia said a deal to cut production...

Pound awaits Fed decision

The British pound has come under pressure late in the European...

Gold tanks on French election

The gold price has pulled back sharply today after yesterday's French election results which saw both...

  


Share: