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  
RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...

Gold steady ahead of key news

The gold price is trading slightly higher today as the market awaits the senate testimony later today from Jeremy Powell who is Donald...


Gold looks to go past $1300

The gold price remains well supported today after yesterday’s stellar gains on the back of a less than convincing speech from The US Federal Reserve...

Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

US dollar hit from 2 sides

The US dollar is under pressure against the major currencies today as fears grow over the possibility of tax reform as well as disastrous results...


Australian dollar has further to fall

The Australian dollar is under further pressure today after yesterday’s spectacular plunge which seems to have put to bed any interest rate hike...

Gold technical review

The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain...

Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

  


Share: