Market News & Analysis

AUD weaker ahead of inflation data; Greenback strengthens.

Apr 24, 2019 | Market Update

High-impact economic news:

11:30 AUD CPI q/q
18:00 EUR German Ifo Business Climate
18:30 GBP Public Sector Net Borrowing

00:00 CAD BOC Rate Statement

The AUD is on track for its third consecutive session of losses, after failing to find support above 71 US cents. The AUD/USD pair ended Tuesday’s session 28 pips lower at 71.01, before sellers took control again this morning. The currency pair is now around 0.7092. It comes as the Australian Bureau of Statistics prepares to release its latest CPI (inflation) data at 11:30am AEST. Financial markets expect the latest Consumer Price Index to rise 0.2% in the first quarter of 2019, compared to a 0.5% lift in the fourth quarter of 2018. With the AUD still being sold off in early trade, you may expect the currency to fall further if the CPI report is in-line or misses expectations.

In contrast to the AUD, the greenback strengthened overnight after new home sales were stronger than forecast. 692,000 new homes were sold in March, compared to 662,000 properties in February. The USD rose against a basket of currencies including the Euro, the Aussie, the Pound, and the Canadian dollar. In fact, the USD/CAD pair rallied to a fresh 3.5 week high while the Euro fell almost 30 pips.

As buyers lifted the USD, the price of gold was hammered further. The commodity is now at its lowest level since December 27, falling $2.62 to US$1,272.32 an ounce.

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