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  
US drillers enjoy higher oil prices

In a surprise move pulled off late last year, it has been revealed that U.S. drillers hedged their bets last year against falling oil prices, which is likely...

Pound hit 7 week high

British pound hit a 7-week high in today’s trading against its US counterpart over uncertainties about Donald Trumps policies after his attempt...

Oil poised to go lower

The oil price is hovering near a 4 month low today after data out shows production cuts from OPEC are failing to counter the effects of increased shale...


Gold continues to rebound

Gold is on target to rack up its 6th straight day of gains on the back of doubts over US President...

Gold rally set to continue

The gold price continues to climb today, racking up its 4th straight day of gains which started last Wednesday after a dovish speech from the US Federal Reserve. At 6.00pm (GMT) gold was trading at $1,234 up from $1,228 at close of trade on Friday...

Pound jumps for 2nd day

The British pound has continued to push higher today after the last hurdle was cleared to enact Brexit, as well as signs that the Bank of England’s board members are divided over monetary policy...


Australian dollar to face headwinds

The Australian is trending higher today, following on from Friday’s gains and brushing off further weakness in commodity prices. At 6.28pm (AEDT) the Aussie dollar was trading at US75.77c...

Gold to rebound strongly

Gold is under further pressure today on rate hike expectations in the US and things...

Imminent rate hike hits the gold price

The gold price is under further pressure today on the back of a potential rate hike from the US Federal reserve this months which analysts agree is a near certainty...

  


Share: