US Consumer inflation remains steady
- RBA releases meeting minutes
- UK CPI m/m 0.1% vs. 0.1%; CPI y/y -0.1% vs. -0.1%
- UK Core CPI y/y 1.1% vs. 1.0%
- UK PPI Input m/m 0.2% vs. 0.2%; PPI output m/m 0.0% vs. -0.1%
- UK RPI m/m 0.0% vs. 0.1%; RPI y/y 0.7% vs. 0.9%
- Germany ZEW Economic sentiment 10.4 vs. 6.0
- US CPI m/m 0.2% vs. 0.2%; Core CPI m/m 0.2% vs. 0.2%
- US CPI y/y 0.2% vs. 0.1%; Core CPI y/y 1.9% vs. 1.9%
Later
- US Capacity utilization rate
- US Industrial production
- New Zealand GDT
- US NAHB Housing market index
The currency markets opened today with the release of the RBA’s meeting minutes. Highlighting that the Australian economy was growing at a comfortably pace, the RBA cited that while there was room for further rate cuts, only a drastic decline in inflation is likely to trigger the move. The RBA’s minutes were overall neutral which helped to support the AUD into early trading today. At the time of writing, the AUDUSD is up 0.45% for the day, trading near the daily highs of 0.713. A bullish close today could see a bullish engulfing highlighting further strength in the near term. The Kiwi is down -0.22% as the NZDUSD trading largely flat for the day ahead of the Global Dairy trade index data due for release.
NZDUSD touched a session low to 0.6452 before managing to post some modest recovery but remains below the day’s open.USDJPY is up a modest 0.09% for the day as the currency declined off the session highs near 123.192. Lack of any major fundamentals from Japan and the Asian session in general saw the Dollar trading mixed.
The European trading session saw the release of the UK consumer inflation data. While CPI managed to meet the inflation expectations, the core CPI increased 1.1% annualized, rising above the estimates of 1.0%. GBPUSD was however trading flat for the day, at 1.5205 at the time of writing.
The Euro remains subdued into another day, down -0.18% as the currency trades new monthly lows. EURUSD briefly touched the day’s lows at 1.065 before managing to recover some of the losses. Data from Eurozone included the German ZEW economic sentiment which increased to 10.4, up from 6.0 expectations.
The US trading session saw the release of the US monthly consumer inflation data which did not give any major surprises. US CPI for the month increased 0.2% as expect while on an annualized basis, the headline CPI was up 0.2% above estimates of 0.1%. The fact that there were no big surprise to the CPI saw the markets rather muted to the news, although the inflation numbers is likely to be taken as a go ahead for the Fed to hike rates in December. USDCAD is down -0.14% after the release, trading near 1.331 at the time of writing.
The remainder of the afternoon will see the US capacity utilization rate and industrial production data from the US, while the New Zealand Global dairy trade index will be released.
